New Peoples Bankshares (NWPP) 10-K 23 Mar 18 2017 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Mar. 22, 2018	Jun. 30, 2017
Document And Entity Information
Entity Registrant Name	NEW PEOPLES BANKSHARES INC
Entity Central Index Key	1,163,389
Document Type	10-K
Trading Symbol	NWPP
Document Period End Date	Dec. 31, 2017
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity a Well-known Seasoned Issuer	No
Entity a Voluntary Filer	No
Entity's Reporting Status Current	Yes
Entity Filer Category	Smaller Reporting Company
Entity Public Float			$ 17,123,287
Entity Common Stock, Shares Outstanding		23,922,086
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2,017

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
ASSETS
Cash and due from banks	$ 18,249	$ 18,500
Interest-bearing deposits with banks	14,452	16,816
Federal funds sold	4	132
Total Cash and Cash Equivalents	32,705	35,448
Investment securities available-for-sale	71,088	70,011
Loans receivable	513,008	468,629
Allowance for loan losses	(6,196)	(6,072)
Net Loans	506,812	462,557
Bank premises and equipment, net	26,115	29,985
Equity securities (restricted)	2,570	2,802
Other real estate owned	6,859	10,655
Accrued interest receivable	2,036	1,848
Bank owned life insurance	4,456	12,274
Deferred taxes, net	5,499	5,285
Right-of-use assets - operating leases	5,253
Other assets	3,307	3,470
Total Assets	666,700	634,335
Deposits
Noninterest bearing	154,631	151,914
Interest-bearing	34,583	40,213
Savings deposits	121,000	114,492
Time deposits	272,330	247,819
Total Deposits	582,544	554,438
FHLB advances	7,558	13,758
Lease liabilities - operating leases	5,253
Accrued interest payable	426	331
Accrued expenses and other liabilities	3,450	2,395
Trust preferred securities	16,496	16,496
Total Liabilities	615,727	587,418
STOCKHOLDERS' EQUITY
Common stock - $2.00 par value; 50,000,000 shares authorized; 23,922,086 and 23,354,457 shares issued and outstanding at December 31, 2017 and 2016, respectively	47,844	46,709
Common stock warrants		764
Additional paid-in capital	14,570	13,965
Retained deficit	(10,847)	(14,065)
Accumulated other comprehensive loss	(594)	(456)
Total Stockholders' Equity	50,973	46,917
Total Liabilities and Stockholders' Equity	$ 666,700	$ 634,335

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Dec. 31, 2017	Dec. 31, 2016
Statement of Financial Position [Abstract]
Common stock, par value (in dollars per share)	$ 2	$ 2
Common stock, authorized	50,000,000	50,000,000
Common stock, issued	23,922,086	23,354,457
Common stock, outstanding	23,922,086	23,354,457

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
INTEREST AND DIVIDEND INCOME
Loans including fees	$ 24,163	$ 22,644
Federal funds sold	1
Interest-earning deposits with banks	192	84
Investments	1,496	1,480
Dividends on equity securities (restricted)	141	138
Total Interest and Dividend Income	25,993	24,346
Deposits
Demand	48	50
Savings	180	166
Time deposits below $100,000	1,356	1,087
Time deposits above $100,000	885	655
FHLB advances	146	152
Federal funds purchased	5	2
Trust preferred securities	593	508
Total Interest Expense	3,213	2,620
NET INTEREST INCOME	22,780	21,726
PROVISION FOR (RECOVERY OF) LOAN LOSSES	450	(500)
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES	22,330	22,226
NONINTEREST INCOME
Gain on sale and leaseback transactions	2,619
Service charges	3,598	2,850
Fees, commission and other income	3,292	3,507
Insurance and investment fees	212	462
Net realized gains on sale of investment securities		303
Bank owned life insurance income	115	169
Total Noninterest Income	9,836	7,291
NONINTEREST EXPENSES
Salaries and employee benefits	13,515	13,126
Occupancy and equipment expenses	4,483	4,157
Lease expense - operating leases	265
Advertising and public relations	351	449
Data processing and telecommunications	2,506	2,403
FDIC insurance premiums	398	470
Other real estate owned and repossessed assets, net	1,444	2,193
Other operating expenses	5,966	5,770
Total Noninterest Expenses	28,928	28,568
INCOME BEFORE INCOME TAXES	3,238	949
INCOME TAX EXPENSE (BENEFIT)	144	(9)
NET INCOME	$ 3,094	$ 958
Income Per Share
Basic and Diluted	$ 0.13	$ 0.04
Average Weighted Shares of Common Stock
Basic and Diluted	23,472,012	23,354,155

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Consolidated Statements Of Comprehensive Income Loss
NET INCOME	$ 3,094	$ 958
Investment securities activity:
Unrealized gains (losses) arising during the year	(60)	108
Tax related to unrealized gains (losses)	20	(37)
Reclassification of realized gains during the year		(303)
Tax related to realized gains		103
TOTAL OTHER COMPREHENSIVE LOSS	(40)	(129)
TOTAL COMPREHENSIVE INCOME	$ 3,054	$ 829

CONSOLIDATED STATEMENTS OF STOC

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Common Stock [Member]	Common Stock Warrants [Member]	Additional Paid in Capital [Member]	Retained Deficit [Member]	Accumu-lated Other Comprehensive Income (Loss) [Member]	Total
Balance at Dec. 31, 2015	$ 46,708	$ 764	$ 13,965	$ (15,023)	$ (327)	$ 46,087
Balance,(in shares) at Dec. 31, 2015	23,354
Balance at Dec. 31, 2015	$ 46,708	764	13,965	(15,023)	(327)	46,087
Balance,(in shares) at Dec. 31, 2015	23,354
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income				958		958
Exercise of Common Stock Warrants	$ 1					1
Other comprehensive income (loss), net of tax					(129)	(129)
Balance at Dec. 31, 2016	$ 46,709	764	13,965	(14,065)	(456)	$ 46,917
Balance,(in shares) at Dec. 31, 2016	23,354					23,354,457
Balance at Dec. 31, 2016	$ 46,709	764	13,965	(14,065)	(456)	$ 46,917
Balance,(in shares) at Dec. 31, 2016	23,354					23,354,457
Balance at Dec. 31, 2016	$ 46,709	764	13,965	(14,065)	(456)	$ 46,917
Balance,(in shares) at Dec. 31, 2016	23,354					23,354,457
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income				3,094		$ 3,094
Exercise of Common Stock Warrants	$ 1,272	(551)	392			1,113
Exercise of Common Stock Warrants,(in shares)	637
Expiration of common stock warrants		$ (213)	213
Retirement of common stock	$ (137)			26		(111)
Retirement of common stock, (in shares)	(69)
Other comprehensive income (loss), net of tax					(40)	(40)
Reclassification of accumulated other comprehensive loss due to tax rate change				98	(98)
Balance at Dec. 31, 2017	$ 47,844		14,570	(10,847)	(594)	$ 50,973
Balance,(in shares) at Dec. 31, 2017	23,922					23,922,086
Balance at Dec. 31, 2017	$ 47,844		$ 14,570	$ (10,847)	$ (594)	$ 50,973
Balance,(in shares) at Dec. 31, 2017	23,922					23,922,086

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 3,094	$ 958
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	2,547	2,398
Provision for (recovery of) loan losses	450	(500)
Income on bank owned life insurance	(115)	(169)
Gain on sale of securities available-for-sale		(303)
Gain on sale and leaseback transactions	(2,619)
Gain on sale of premises and equipment	(5)	(63)
Gain (loss) on sale of foreclosed real estate	64	(221)
Adjustment of carrying value of foreclosed real estate	758	1,414
Accretion of bond premiums/discounts	785	931
Deferred tax benefit	(193)	(97)
Net change in:
Interest receivable	(188)	(32)
Other assets	70	(1,257)
Accrued interest payable	95	43
Accrued expenses and other liabilities	991	345
Net Cash Provided by Operating Activities	5,734	3,447
CASH FLOWS FROM INVESTING ACTIVITIES
Net increase in loans	(45,031)	(32,140)
Proceeds from the sale of loans	3,651
Purchase of securities available-for-sale	(19,843)	(14,990)
Proceeds from sale and maturities of securities available-for-sale	17,921	45,797
Net sale (purchase) of equity securities (restricted)	232	(361)
Payments for the purchase of premises and equipment	(2,164)	(4,790)
Payments for the purchase of/improvements to other real estate owned		(48)
Proceeds from bank owned life insurance	7,933
Proceeds from sale and leaseback transactions	1,042
Proceeds from sale of premises and equipment	9	743
Proceeds from insurance claims on other real estate owned	12
Proceeds from sales of other real estate owned	4,742	4,232
Net Cash Used in Investing Activities	(31,496)	(1,557)
CASH FLOWS FROM FINANCING ACTIVIES
Exercise of common stock warrants	1,113	1
Net increase (decrease) in Federal Home Loan Bank advances	(6,200)	10,800
Net change in:
Demand deposits	(2,913)	12,162
Savings deposits	6,508	(6,584)
Time deposits	24,511	(9,159)
Net Cash Provided by Financing Activities	23,019	7,220
Net increase (decrease) in cash and cash equivalents	(2,743)	9,110
Cash and Cash Equivalents, Beginning of the Year	35,448	26,338
Cash and Cash Equivalents, End of the Year	32,705	35,448
Supplemental Disclosure of Cash Paid During the Year for:
Interest	3,118	2,577
Taxes		95
Supplemental Disclosure of Non Cash Transactions:
Right-of-use assets obtained in exchange for new operating lease liabilities	5,253
Loan made to finance sale of premises and equipment	4,935
Other real estate acquired in settlement of foreclosed loans	3,087	4,577
Loans made to finance sale of foreclosed real estate	1,477	818
Transfer of premises and equipment to other real estate	125
Transfer of other real estate to premises and equipment		125
Retirement of common stock	(111)
Change in unrealized gains (losses) on securities available-for-sale	$ (60)	$ 195

NATURE OF OPERATIONS

NATURE OF OPERATIONS	12 Months Ended
	Dec. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
NATURE OF OPERATIONS	NOTE 1 NATURE OF OPERATIONS Nature of Operations –

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Dec. 31, 2017
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation and Consolidation Use of Estimates - Cash and Cash Equivalents Investment Securities The amortization of premiums and accretion of discounts are recognized in interest income using the effective interest method over the period to maturity. Realized gains and losses on dispositions are based on the net proceeds and the adjusted book value of the securities sold, using the specific identification method. Realized gains (losses) on securities available-for-sale are included in noninterest income and, when applicable, are reported as a reclassification adjustment, net of tax, in other comprehensive income. Unrealized gains and losses on investment securities available for sale are based on the difference between book value and fair value of each security. These gains and losses are credited or charged to other comprehensive income, net of tax, whereas realized gains and losses flow through the statements of income. Loans – It is the Company’s policy to stop accruing interest on a loan, and classify that loan as non-accrual under the following circumstances: (a) whenever we are advised by the borrower that scheduled payment or interest payments cannot be met, (b) when our best judgment indicates that payment in full of principal and interest can no longer be expected, or (c) when any such loan or obligation becomes delinquent for 90 days unless it is both well secured and in the process of collection. All interest accrued but not collected for loans that are place on nonaccrual or charged off is reversed against interest income, except in the case of a nonaccrual loan that is well secured and in the process of collection, in which case, the interest accrued but not collected is not reversed. The interest on these loans is accounted for on the cash basis or cost-recovery method, until qualifying for return to accrual. Generally, loans are returned to accrual status when all the principal and interest amounts contractually due are brought current, six consecutive timely payments are made, and prospects for future contractual payments are reasonably assured. A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan by loan basis for commercial and construction loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral dependent. Significant Group Concentrations of Credit Risk – Allowance for Loan Losses – The allowance is increased by a provision for loan losses, which is charged to expense and reduced by charge-offs, net of recoveries. Loans are charged against the allowance for loan losses when management believes that collectability of all or part of the principal is unlikely. Past due status is determined based on contractual terms. In regard to our consumer and consumer real estate loan portfolio, the Company uses the guidance found in the Uniform Retail Credit Classification and Account Management Policy which affects our estimate of the allowance for loan losses. Under this approach, a consumer or consumer real estate loan must initially have a credit risk grade of Pass or better. Subsequently, if the loan becomes contractually 90 days past due or the borrower files for bankruptcy protection, the loan is downgraded to Substandard and placed in nonaccrual status. If the loan is unsecured, upon being deemed Substandard, the entire loan amount is charged off. For non 1-4 family residential loans that are 90 days past due or greater, or in bankruptcy, the collateral value less estimated liquidation costs is compared to the loan balance to calculate any potential deficiency. If the collateral is sufficient then no charge-off is necessary. If a deficiency exists, then upon the loan becoming contractually 120 days past due, the deficiency is charged-off against the allowance for loan loss. In the case of 1-4 family residential or home equity loans, upon the loan becoming 120 days past due, a current value is obtained and after application of an estimated liquidation discount, a comparison is made to the loan balance to calculate any deficiency. Subsequently, any noted deficiency is then charged-off against the allowance for loan loss when the loan becomes contractually 180 days past due. If the customer has filed bankruptcy, then within 60 days of the bankruptcy notice, any calculated deficiency is charged-off against the allowance for loan loss. Collection efforts continue by means of repossessions or foreclosures, and upon bank ownership, liquidation ensues. Other Real Estate Owned Bank Premises and Equipment Type Estimated useful life Buildings 39 years Paving and landscaping 15 years Computer equipment and software 3 to 5 years Vehicles 5 years Furniture and other equipment 5 to 10 years Leashold improvements are amortized over the terms of the respective leases or the estimated useful lives of the improvements, whichever is shorter. Repairs and maintenance costs are recorded as a component of noninterest expense as incurred. Common Stock Warrants Income Taxes The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not the tax postion will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such positions are then measured based on the largest benefit that has a greater than 50% likelihood of being realized upon settlement. See Note 10, Income Taxes, for additional information. The Company records any penalties and interest attributed to uncertain tax positions as a component of income tax expenses. The Company has adopted ASU 2018-02, “Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income” which is considered a change in accounting principle. Because the required adjustment of deferred taxes is required to be included in income from continuing operations, the tax effects of items within accumulated other comprehensive income (commonly referred to as “stranded” tax effects) would not reflect the appropriate tax rate. Adoption of this ASU eliminates the “stranded” tax effects associated with the change in the federal corporate income tax rate in the Tax Cuts and Jobs Act of 2017. The Company has reclassified “stranded” tax effects totaling $98 thousand from accumulated other comprehensive income (loss) to retained earnings and these reclassified amounts are reflected in the accompanying Consolidated Balance Sheets, Consolidated Statements of Comprehensive Income, and Consolidated Statements of Stockholders’ Equity. Income Per Share Financial Instruments – Off-balance-sheet instruments Comprehensive Income (Loss) Advertising Cost Reclassification Subsequent Events

INCOME PER SHARE

INCOME PER SHARE	12 Months Ended
	Dec. 31, 2017
Income Per Share
INCOME PER SHARE	NOTE 3 INCOME PER SHARE Basic income per share computations are based on the weighted average number of shares outstanding during each year. Dilutive earnings per share reflects the additional common shares that would have been outstanding if dilutive potential common shares had been issued. Potential common shares that may be issued relate to outstanding common stock warrants and are determined by the Treasury Method. For the year ended December 31, 2017 there were no potential common shares. For the year ended December 31, 2016 potential common shares of 881,978, were anti-dilutive and were not included in the calculation. Basic and diluted net income per common share calculations follows: (Amounts in Thousands, Except For the years ended Share and Per Share Data) December 31, 2017 2016 Net income $ 3,094 $ 958 Weighted average shares outstanding 23,472,012 23,354,155 Weighted average dilutive shares outstanding 23,472,012 23,354,155 Basic and diluted income per share $ 0.13 $ 0.04

DEPOSITS IN AND FEDERAL FUNDS S

DEPOSITS IN AND FEDERAL FUNDS SOLD TO BANKS	12 Months Ended
	Dec. 31, 2017
Notes to Financial Statements
DEPOSITS IN AND FEDERAL FUNDS SOLD TO BANKS	NOTE 4 DEPOSITS IN AND FEDERAL FUNDS SOLD TO BANKS The Bank had federal funds sold and cash on deposit with other commercial banks amounting to $14.5 million and $16.9 million at December 31, 2017 and 2016, respectively. Deposit amounts at other commercial banks may, at times, exceed federally insured limits. The Bank is required to maintain average reserve balances, computed by applying prescribed percentages to its various types of deposits, either at the Bank or on deposit with the Federal Reserve Bank. At December 31, 2017 and 2016, all required reserves were met by the Bank’s vault cash. The Bank has a $5.0 million unsecured fed funds line of credit facility with a correspondent bank that was available at December 31, 2017 and 2016. A condition of this unsecured fed funds line of credit is that the Bank agreed to maintain a minimum deposit balance with the correspondent bank of $200 thousand. As of December 31, 2017 and 2016, the Bank was in compliance with this requirement.

INVESTMENT SECURITIES

INVESTMENT SECURITIES	12 Months Ended
	Dec. 31, 2017
Investment securities activity:
INVESTMENT SECURITIES	NOTE 5 INVESTMENT SECURITIES The amortized cost and estimated fair value of securities (all available-for-sale) are as follows: Gross Gross Approximate Amortized Unrealized Unrealized Fair (Dollars are in thousands) Cost Gains Losses Value December 31, 2017 U.S. Government Agencies $ 23,986 $ 79 $ 221 $ 23,844 Taxable municipals 4,466 9 78 4,397 Corporate bonds 5,437 168 26 5,579 Mortgage backed securities 37,950 3 685 37,268 Total Securities AFS $ 71,839 $ 259 $ 1,010 $ 71,088 December 31, 2016 U.S. Government Agencies $ 24,821 $ 80 $ 269 $ 24,632 Taxable municipals 2,340 2 50 2,292 Corporate bonds 3,600 149 - 3,749 Mortgage backed securities 39,941 25 628 39,338 Total Securities AFS $ 70,702 $ 256 $ 947 $ 70,011 The following table details unrealized losses and related fair values in the available-for-sale portfolio. This information is aggregated by the length of time that individual securities have been in a continuous unrealized loss position as of December 31, 2017 and December 31, 2016. Less than 12 Months 12 Months or More Total (Dollars are in thousands) Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses December 31, 2017 U.S. Government Agencies $ 7,840 $ 69 $ 7,189 $ 152 $ 15,029 $ 221 Taxable municipals 2,403 44 767 34 3,170 78 Corporate bonds 1,507 26 - - 1,507 26 Mtg. backed securities 14,720 145 21,500 540 36,220 685 Total Securities AFS $ 26,470 $ 284 $ 29,456 $ 726 $ 55,926 $ 1,010 December 31, 2016 U.S. Government Agencies $ 12,081 $ 250 $ 2,449 $ 19 $ 14,530 $ 269 Taxable municipals 1,561 50 - - 1,561 50 Corporate bonds 500 - - - 500 - Mtg. backed securities 28,680 543 4,655 85 33,335 628 Total Securities AFS $ 42,822 $ 843 $ 7,104 $ 104 $ 49,926 $ 947 At December 31, 2017, the available-for-sale portfolio included 127 investments for which the fair market value was less than amortized cost. At December 31, 2016, the available-for-sale portfolio included 107 investments for which the fair market value was less than amortized cost. Management evaluates securities for other than temporary impairment at least on a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. Consideration is given to (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial conditions and near-term prospects of the issuer, and (3) the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. Based on the Company’s analysis, the Company concluded that no securities had an other-than-temporary impairment at December 31, 2017 or December 31, 2016. Investment securities with a carrying value of $11.0 million and $11.3 million at December 31, 2017 and 2016, respectively, were pledged to secure public deposits and for other purposes required by law. Gross proceeds on the sale of investment securities were $3.2 million and $29.5 million, respectively, as of December 31, 2017 and 2016. Gross realized gains and losses pertaining to the sale of investment securities available for sale are detailed as follows: For the years ended December 31, (Dollars are in thousands) 2017 2016 Gross gains realized $ 30 $ 366 Gross losses realized (30) (63) Net realized gains $ - $ 303 The amortized cost and fair value of investment securities at December 31, 2017, by contractual maturity, are shown in the following schedule. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Also, actual maturities may differ from scheduled maturities on amortizing securities, such as mortgage-back securities and collateralized mortgage obligations, because the underlying collateral on these type of securities may be repaid prior to the scheduled maturity date. Weighted (Dollars are in thousands) Amortized Fair Average Securities Available for Sale Cost Value Yield Due in one year or less $ 7 $ 7 1.49% Due after one year through five years 3,316 3,267 1.97% Due after five years through ten years 15,822 15,847 3.10% Due after ten years 52,694 51,967 2.24% Total $ 71,839 $ 71,088 2.42% The Bank, as a member of the Federal Reserve Bank and the Federal Home Loan Bank, is required to hold stock in each. The Bank also owns stock in CBB Financial Corp., which is a correspondent of the Bank. These equity securities are restricted from trading and are recorded at a cost of $2.6 million and $2.8 million as of December 31, 2017 and 2016, respectively. The stock has no quoted market value and no ready market exists.

LOANS

LOANS	12 Months Ended
	Dec. 31, 2017
Receivables [Abstract]
LOANS	NOTE 6 LOANS Loans receivable outstanding at December 31, are summarized as follows: (Dollars are in thousands) 2017 2016 Real estate secured: Commercial $ 127,688 $ 103,331 Construction and land development 29,763 25,755 Residential 1-4 family 249,159 249,700 Multifamily 15,481 12,582 Farmland 22,998 24,948 Total real estate loans 445,089 416,316 Commercial 41,345 26,955 Agriculture 3,494 3,164 Consumer installment loans 22,411 22,188 All other loans 669 6 Total loans $ 513,008 $ 468,629 Loans receivable on nonaccrual status at December 31, are summarized as follows: (Dollars are in thousands) 2017 2016 Real estate secured: Commercial $ 2,035 $ 3,403 Construction and land development 470 319 Residential 1-4 family 2,991 8,355 Multifamily 152 166 Farmland 800 1,003 Total real estate loans 6,448 13,246 Commercial 1,065 - Agriculture 3 83 Consumer installment loans 48 76 Total loans receivable on nonaccrual status $ 7,564 $ 13,405 Total interest income not recognized on nonaccrual loans for 2017 and 2016 was $591 thousand and $639 thousand, respectively. In 2017, 65 nonperforming loans totaling $3.9 million were sold to further reduce the level of nonaccrual loans with proceeds of $3.6 million received. Charge offs of $256 thousand associated with the sold nonperforming loans were realized and fully absorbed by the allowance for loan losses during 2017. There were no nonperforming loans sold in 2016. The following table presents information concerning the Company’s investment in loans considered impaired as of December 31, 2017 and December 31, 2016: As of December 31, 2017 (Dollars are in thousands) Average Recorded Investment Interest Income Recognized Recorded Investment Unpaid Principal Balance Related Allowance With no related allowance recorded: Real estate secured: Commercial $ 2,910 $ 122 $ 2,646 $ 2,719 $ - Construction and land development 87 6 424 680 - Residential 1-4 family 3,779 198 3,586 3,885 - Multifamily 377 20 281 321 - Farmland 2,283 59 1,264 1,664 - Commercial 126 12 628 628 - Agriculture 17 1 12 12 - Consumer installment loans 12 1 8 8 - All other loans - - - - - With an allowance recorded: Real estate secured: Commercial 1,467 102 2,503 2,622 499 Construction and land development 177 - - - - Residential 1-4 family 591 19 421 437 91 Multifamily 528 - - - - Farmland 614 22 378 378 243 Commercial 323 26 489 572 413 Agriculture 1 - - - - Consumer installment loans 2 - - - - All other loans - - - - - Total $ 13,294 $ 588 $ 12,640 $ 13,926 $ 1,246 As of December 31, 2016 (Dollars are in thousands) Average Recorded Investment Interest Income Recognized Recorded Investment Unpaid Principal Balance Related Allowance With no related allowance recorded: Real estate secured: Commercial $ 4,104 $ 147 $ 3,636 $ 4,055 $ - Construction and land development 72 1 5 5 - Residential 1-4 family 3,745 192 3,861 4,182 - Multifamily 290 21 301 342 - Farmland 4,148 184 3,895 4,601 - Commercial - - - - - Agriculture 27 2 19 19 - Consumer installment loans 25 1 26 43 - All other loans - - - - - With an allowance recorded: Real estate secured: Commercial 1,469 8 1,191 1,270 65 Construction and land development 265 - 240 469 106 Residential 1-4 family 862 22 555 565 56 Multifamily 80 - - - - Farmland 575 27 591 602 299 Commercial 70 3 67 67 18 Agriculture 86 1 5 5 5 Consumer installment loans 26 1 9 9 3 All other loans - - - - - Total $ 15,844 $ 610 $ 14,401 $ 16,234 $ 552 An age analysis of past due loans receivable is below. At December 31, 2017 and 2016, there were no loans over 90 days past due that were accruing. As of December 31, 2017 (Dollars are in thousands) Loans 30-59 Days Past Due Loans 60-89 Days Past Due Loans 90 or More Days Past Due Total Past Due Loans Current Loans Total Loans Real estate secured: Commercial $ 190 $ 2,396 $ 453 $ 3,039 $ 124,649 $ 127,688 Construction and land development 69 246 42 357 29,406 29,763 Residential 1-4 family 3,789 378 969 5,136 244,023 249,159 Multifamily 125 89 - 214 15,267 15,481 Farmland 309 - - 309 22,689 22,998 Total real estate loans 4,482 3,109 1,464 9,055 436,034 445,089 Commercial 103 25 603 731 40,614 41,345 Agriculture 38 - - 38 3,456 3,494 Consumer installment Loans 102 15 28 145 22,266 22,411 All other loans - - - - 669 669 Total loans $ 4,725 $ 3,149 $ 2,095 $ 9,969 $ 503,039 $ 513,008 As of December 31, 2016 (Dollars are in thousands) Loans 30-59 Days Past Due Loans 60-89 Days Past Due Loans 90 or More Days Past Due Total Past Due Loans Current Loans Total Loans Real estate secured: Commercial $ 1,676 $ 307 $ 1,083 $ 3,066 $ 100,265 $ 103,331 Construction and land development 103 17 44 164 25,591 25,755 Residential 1-4 family 4,237 1,547 2,233 8,017 241,683 249,700 Multifamily 1,367 - - 1,367 11,215 12,582 Farmland 2,987 - - 2,987 21,961 24,948 Total real estate loans 10,370 1,871 3,360 15,601 400,715 416,316 Commercial 20 - - 20 26,935 26,955 Agriculture 19 - 78 97 3,067 3,164 Consumer installment Loans 110 15 36 161 22,027 22,188 All other loans - - - - 6 6 Total loans $ 10,519 $ 1,886 $ 3,474 $ 15,879 $ 452,750 $ 468,629 The Company categorizes loans receivable into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company analyzes loans and leases individually by classifying the loans receivable as to credit risk. The Company uses the following definitions for risk ratings: Pass Special Mention Substandard A substandard loan is inadequately protected by the current sound net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans classified as substandard must have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt; they are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Doubtful Loans classified Doubtful have all the weaknesses inherent in loans classified Substandard, plus the added characteristic that the weaknesses make collection or liquidation in full on the basis of currently existing facts, conditions, and values highly questionable and improbable. There were no loans categorized as doubtful at December 31, 2017 or 2016. Based on the most recent analysis performed, the risk category of loans receivable was as follows: As of December 31, 2017 (Dollars are in thousands) Pass Special Mention Substandard Total Real estate secured: Commercial $ 120,104 $ 3,228 $ 4,356 $ 127,688 Construction and land development 28,462 816 485 29,763 Residential 1-4 family 243,048 1,810 4,301 249,159 Multifamily 13,695 1,445 341 15,481 Farmland 19,273 2,445 1,280 22,998 Total real estate loans 424,582 9,744 10,763 445,089 Commercial 37,973 2,307 1,065 41,345 Agriculture 3,468 23 3 3,494 Consumer installment loans 22,357 2 52 22,411 All other loans 669 - - 669 Total $ 489,049 $ 12,076 11,883 $ 513,008 As of December 31, 2016 (Dollars are in thousands) Pass Special Mention Substandard Total Real estate secured: Commercial $ 92,562 $ 6,922 $ 3,847 $ 103,331 Construction and land development 23,905 1,531 319 25,755 Residential 1-4 family 238,400 2,117 9,183 249,700 Multifamily 10,848 1,367 367 12,582 Farmland 19,070 1,545 4,333 24,948 Total real estate loans 384,785 13,482 18,049 416,316 Commercial 26,197 691 67 26,955 Agriculture 3,076 - 88 3,164 Consumer installment loans 22,086 - 102 22,188 All other loans 6 - - 6 Total $ 436,150 $ 14,173 18,306 $ 468,629

ALLOWANCE FOR LOAN LOSSES

ALLOWANCE FOR LOAN LOSSES	12 Months Ended
	Dec. 31, 2017
Receivables [Abstract]
ALLOWANCE FOR LOAN LOSSES	NOTE 7 ALLOWANCE FOR LOAN LOSSES The following table details activity in the allowance for loan losses by portfolio segment for the period ended December 31, 2017. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories. As of December 31, 2017 (Dollars are in thousands) Beginning Balance Charge Offs Recoveries Provisions Ending Balance Real estate secured: Commercial $ 1,625 $ (179) $ 193 $ 350 $ 1,989 Construction and land development 346 (1) - (154) 191 Residential 1-4 family 2,376 (714) 48 690 2,400 Multifamily 241 - - (135) 106 Farmland 428 (49) 361 (325) 415 Total real estate loans 5,016 (943) 602 426 5,101 Commercial 163 (11) 153 355 660 Agriculture 31 (4) 5 (12) 20 Consumer installment loans 123 (147) 19 161 156 All other loans - - - 3 3 Unallocated 739 - - (483) 256 Total $ 6,072 $ (1,105) $ 779 $ 450 $ 6,196 Allowance for Loan Losses Recorded Investment in Loans As of December 31, 2017 (Dollars are in thousands) Individually Evaluated for Impairment Collectively Evaluated for Impairment Total Individually Evaluated for Impairment Collectively Evaluated for Impairment Total Real estate secured: Commercial $ 499 $ 1,490 $ 1,989 $ 5,149 $ 122,539 $ 127,688 Construction and land development - 191 191 424 29,339 29,763 Residential 1-4 family 91 2,309 2,400 4,007 245,152 249,159 Multifamily - 106 106 281 15,200 15,481 Farmland 243 172 415 1,642 21,356 22,998 Total real estate loans 833 4,268 5,101 11,503 433,586 445,089 Commercial 413 247 660 1,117 40,228 41,345 Agriculture - 20 20 12 3,482 3,494 Consumer installment loans - 156 156 8 22,403 22,411 All other loans - 3 3 - 669 669 Unallocated - 256 256 - - - Total $ 1,246 $ 4,950 6,196 $ 12,640 $ 500,368 $ 513,008 The following table details activity in the allowance for loan losses by portfolio segment for the period ended December 31, 2016. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories. As of December 31, 2016 (Dollars are in thousands) Beginning Balance Charge Offs Recoveries Provisions Ending Balance Real estate secured: Commercial $ 2,384 $ (557) $ 220 $ (422) $ 1,625 Construction and land development 332 (5) 26 (7) 346 Residential 1-4 family 2,437 (720) 87 572 2,376 Multifamily 232 (18) - 27 241 Farmland 675 (2) 103 (348) 428 Total real estate loans 6,060 (1,302) 436 (178) 5,016 Commercial 266 (65) 62 (100) 163 Agriculture 124 - 7 (100) 31 Consumer installment loans 128 (83) 24 54 123 All other loans 1 - - (1) - Unallocated 914 - - (175) 739 Total $ 7,493 $ (1,450) $ 529 $ (500) $ 6,072 Allowance for Loan Losses Recorded Investment in Loans As of December 31, 2016 (Dollars are in thousands) Individually Evaluated for Impairment Collectively Evaluated for Impairment Total Individually Evaluated for Impairment Collectively Evaluated for Impairment Total Real estate secured: Commercial $ 65 $ 1,560 $ 1,625 $ 4,827 $ 98,504 $ 103,331 Construction and land development 106 240 346 245 25,510 25,755 Residential 1-4 family 56 2,320 2,376 4,416 245,284 249,700 Multifamily - 241 241 301 12,281 12,582 Farmland 299 129 428 4,486 20,462 24,948 Total real estate loans 526 4,490 5,016 14,275 402,041 416,316 Commercial 18 145 163 67 26,888 26,955 Agriculture 5 26 31 24 3,140 3,164 Consumer installment loans 3 120 123 35 22,153 22,188 All other loans - - - - 6 6 Unallocated - 739 739 - - - Total $ 552 $ 5,520 6,072 $ 14,401 $ 454,228 $ 468,629 In determining the amount of our allowance, we rely on an analysis of our loan portfolio, our experience and our evaluation of general economic conditions. If our assumptions prove to be incorrect, our current allowance may not be sufficient to cover future loan losses and we may experience significant increases to our provision.

TROUBLED DEBT RESTRUCTURINGS

TROUBLED DEBT RESTRUCTURINGS	12 Months Ended
	Dec. 31, 2017
Troubled Debt Restructurings
TROUBLED DEBT RESTRUCTURINGS	NOTE 8 TROUBLED DEBT RESTRUCTURINGS At December 31, 2017 loans classified as troubled debt restructurings totaled $6.9 million compared to $9.6 million at December 31, 2016. The following table presents information related to loans modified as troubled debt restructurings during the years ended December 31, 2017 and 2016. December 31, 2017 December 31, 2016 Troubled Debt Restructurings (Dollars are in thousands) # of Loans Pre-Mod. Recorded Investment Post-Mod. Recorded Investment # of Loans Pre-Mod. Recorded Investment Post-Mod. Recorded Investment Real estate secured: Commercial - $ - $ - 1 $ 341 $ 336 Construction and land Development - - - - - - Residential 1-4 family - - - 2 420 402 Multifamily - - - - - - Farmland - - - 1 291 268 Total real estate loans - - - 4 1,052 1,006 Commercial 1 443 437 - - - Agriculture - - - - - - Consumer installment loans - - - - - - All other loans - - - - - - Total 1 $ 443 $ 437 4 $ 1,052 $ 1,006 During the year ended 2017, the Company modified the terms of one loan for which the modification was considered to be a troubled debt restructuring. The interest rate was not modified on this loan; however, the payment terms and maturity date were changed. During the year ended 2016, the Company modified four loans that were considered to be troubled debt restructurings. On one loan, the interest rate and maturity date were not modified; however, the payment terms were changed. On one loan, the interest rate was lowered and the payment terms were changed. On two loans, the interest rate was lowered and the payment terms and maturity date were changed. No loans modified as troubled debt restructurings defaulted during the year ended December 31, 2017. One commercial real estate loan with a recorded investment of $211 thousand that had been modified as a troubled debt restructuring defaulted during the year ended December 31, 2016, which was within twelve months of the loan’s modification date. Generally, a troubled debt restructuring is considered to be in default once it becomes 90 days or more past due following a modification. When determining the level of the allowance for loan losses, management considers troubled debt restructurings and subsequent defaults in these restructurings in its estimate. The Company evaluates all troubled debt restructurings for possible further impairment. As a result, the allowance may be increased, adjustments may be made in the allocation of the allowance, or charge-offs may be taken to further writedown the carrying value of the loan.

BANK PREMISES AND EQUIPMENT

BANK PREMISES AND EQUIPMENT	12 Months Ended
	Dec. 31, 2017
Property, Plant and Equipment [Abstract]
BANK PREMISES AND EQUIPMENT	NOTE 9 BANK PREMISES AND EQUIPMENT Depreciation expense for 2017 and 2016 was $2.5 million and 2.4 million, respectively. Bank premises and equipment at December 31, are summarized as follows: (Dollars are in thousands) 2017 2016 Land $ 8,130 $ 9,115 Buildings and improvements 18,866 22,889 Furniture and equipment 22,190 20,369 49,186 52,373 Less accumulated depreciation (23,071) (22,388) Bank Premises and Equipment $ 26,115 $ 29,985

INCOME TAXES

INCOME TAXES	12 Months Ended
	Dec. 31, 2017
Income Tax Disclosure [Abstract]
INCOME TAXES	NOTE 10 INCOME TAXES The Tax Cuts and Jobs Act (“TCJA”) was signed into law by the President on December 22, 2017. The TCJA includes the reduction in the corporate tax rate from a top rate of 35% to a flat rate of 21%, changes in business deductions, and many international provisions. The reduction in the corporate tax rate resulted in a $4.0 million adjustment to our deferred tax assets. The Company recognized the income tax effects of the 2017 Tax Act in its 2017 financial statements in accordance with Staff Accounting Bulletin No. 118, which provides SEC staff guidance for the application of ASC Topic 740, Income Taxes, in the reporting period in which the 2017 Tax Act was signed into law. As such, the Company’s results reflect the income tax effects of the 2017 Tax Act for which the accounting under ASC Topic 740 is complete and provision amounts for those specific income tax effects of the 2017 Tax act for which the accounting under ASC Topic 740 is incomplete but a reasonable estimate could be determined. The Company did not identify items for which the income tax effects of the 2017 Tax Act have not been completed and a reasonable estimate could not be determined as of December 31, 2017. The source of pre-tax book income is summarized as follows for the years ended December 31: (Dollars are in thousands) 2017 2016 Pre-tax book income Domestic $ 3,238 $ 949 Total pre-tax book income $ 3,238 $ 949 Income tax expense (benefit) is summarized as follows for the years ended December 31: (Dollars are in thousands) 2017 2016 Current income tax expense (benefit) Federal $ 337 $ - State - (7) Total current income tax expense (benefit) 337 (7) Deferred income tax expense (benefit) Federal (193) (2) State - - Total deferred income tax expense (193) (2) Income tax expense (benefit) $ 144 $ (9) The following table summarizes the differences between the actual income tax expense and the amounts computed using the federal statutory tax rate of 34%: (Dollars are in thousands) 2017 2016 Income tax expense (benefit) at the applicable federal rate $ 1,101 $ 323 Permanent differences resulting from: Nondeductible expenses 15 7 Tax exempt interest income (35) (44) State income taxes less federal tax effect - 5 Bank owned life insurance (39) (57) Remeasurement of deferred taxes under TCJA 4,046 - Deferred tax valuation allowance change, net (5,317) (338) Penalty on surrender of bank owned life insurance 318 - Other adjustments 55 95 Income tax expense (benefit) $ 144 $ (9) The net deferred tax assets and liabilities resulting from temporary differences as of December 31 are summarized as follows: (Dollars are in thousands) 2017 2016 Deferred Tax Assets Allowance for loan losses $ 1,301 $ 2,064 Deferred compensation 89 147 Accrued employee benefits - 15 Nonaccrual loan interest 504 896 Other real estate owned 264 1,911 Repossessed assets - 12 Amortization of core deposits 51 101 Amortization of goodwill 260 514 Capitalized interest and repair expense 25 41 Net operating loss carryforward 3,444 5,648 AMT carryforward 339 320 Unrealized loss on securities available for sale 158 235 Total Assets, gross 6,435 11,904 Valuation allowance - (5,317) Total Assets, net 6,435 6,587 Deferred Tax Liabilities Accelerated depreciation 607 867 Accrued employee benefits 38 - Prepaid expenses 20 38 Deferred loan costs 271 397 Total Liabilities, gross 936 1,302 Net Deferred Tax Asset $ 5,499 $ 5,285 Deferred tax assets represent the future tax benefit of future deductible differences and, if it is more likely than not that a tax asset will not be realized, a valuation allowance is required to reduce the recorded deferred tax assets to net realizable value. The Company has evaluated positive and negative evidence to assess the realizability of its deferred taxes. Based on the evidence, including taxable income projections, the Company believes it is more likely than not that its deferred tax assets will be realizable. As a result, the Company reversed the valuation allowance of $5.3 million that existed as of December 31, 2016 during 2017. Accordingly, the Company has not included a valuation allowance against its deferred tax assets as of December 31, 2017. The Company measures deferred tax assets and liabilities using enacted tax rates that will apply in the years in which the temporary differences are expected to be recovered or paid. Accordingly, the Company’s deferred tax assets and liablities were remeasured to reflect the reduction in the U.S. corporate income tax rate from 34 percent to 21 percent, resulting in a $4.0 million increase in income tax expense for the year ended December 31, 2017 and a corresponding $4.0 million decrease in net deferred tax assets as of December 31, 2017. Tax positions are evaluated in a two-step process. The Company first determines whether it is more likely than not that a position will be sustained upon examination. If a tax position meets the more-likely-than-not recognition threshold, it is then measured to determine the amount of benefit to recognize in the financial statements. The tax position is measured as the largest amount of benefit that is greater than 50% likely of being recognized. The Company classifies interest and penalties as a component of income tax expense. As of December 31, 2017, the Company had Federal and state net operating loss carryforward amounts of approximately $15.9 million and $2.2 million, respectively. These amounts are not limited pursuant to IRC Section 382. The Company is subject to examination in the United States and multiple state jurisdictions. Years prior to 2014 are no longer subject to examination by taxing authorities.

TIME DEPOSITS

TIME DEPOSITS	12 Months Ended
	Dec. 31, 2017
Notes to Financial Statements
TIME DEPOSITS	NOTE 11 TIME DEPOSITS The aggregate amount of time deposits that meet or exceed the FDIC Insurance limit of $250,000 was $25.3 million and $13.0 million at December 31, 2017 and 2016, respectively. We have brokered deposits totaling $2.7 million at December 31, 2017 and 2016, respectively. At December 31, 2017, the scheduled maturities of time deposits are as follows (dollars are in thousands): 2018 $ 171,073 2019 31,096 2020 24,340 2021 26,706 2022 19,115 After five years - Total $ 272,330

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	12 Months Ended
	Dec. 31, 2017
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	NOTE 12 RELATED PARTY TRANSACTIONS During the year, officers, directors (and companies controlled by them), principal shareholders, and associates were customers of and had loan transactions with the Bank in the normal course of business which amounted to $6.6 million at December 31, 2017 and $5.4 million at December 31, 2016. During the year ended December 31, 2017, total principal additions were $4.3 million and principal payments were $3.2 million, including renewals and advances on revolving lines of credit. During the year ended December 31, 2016, total principal additions were $4.9 million and principal payments were $3.6 million, including renewals and advances on revolving lines of credit. These transactions were made on substantially the same terms as those prevailing for other customers and did not involve any abnormal risk. Total related party deposits held at the Bank were $12.0 million and $11.1 million at the end of years 2017 and 2016, respectively. On June 7, 2017, NPB Insurance Services, Inc. purchased a 39% membership interest in Lonesome Pine Title Agency, LLC, which provides title insurance. Another member of the agency is a related party to the Company.

RETIREMENT PLANS

RETIREMENT PLANS	12 Months Ended
	Dec. 31, 2017
Retirement Benefits [Abstract]
RETIREMENT PLANS	NOTE 13 RETIREMENT PLANS The Company has established a qualified defined contribution plan that covers all full time employees. The Company matches employee contributions up to a maximum of 3% of their salary. The Company contributed $263 thousand and $385 thousand to the defined contribution plan for 2017 and 2016, respectively. In addition, in 2002, the Bank established a salary continuation plan for key executives, which is funded by single premium life insurance policies. Expenses related to the plan were $5 thousand for the years 2017 and 2016, respectively.

OTHER REAL ESTATE OWNED

OTHER REAL ESTATE OWNED	12 Months Ended
	Dec. 31, 2017
Real Estate [Abstract]
OTHER REAL ESTATE OWNED	NOTE 14 OTHER REAL ESTATE OWNED The following table summarizes the activity in other real estate owned for the years ended December 31, 2017 and 2016: 2017 2016 (Dollars are in thousands) Balance, beginning of year $ 10,655 $ 12,398 Additions 3,087 4,577 Purchases of/improvements to other real estate owned - 48 Transfers of premises and equipment to other real estate owned 125 - Transfers of other real estate owned to premises and equipment - (125) Proceeds from sales of other real estate owned (4,742) (4,232) Proceeds from insurance claims (12) - Loans made to finance sales of Other real estate owned (1,477) (818) Adjustment of carrying value (758) (1,414) Deferred gain from sales 45 - Gain (loss) from sales (64) 221 Balance, end of year $ 6,859 $ 10,655

BANK OWNED LIFE INSURANCE

BANK OWNED LIFE INSURANCE	12 Months Ended
	Dec. 31, 2017
Bank Owned Life Insurance
BANK OWNED LIFE INSURANCE	NOTE 15 BANK OWNED LIFE INSURANCE At December 31, 2017 and 2016, we had an aggregate total cash surrender value of $4.5 million and $12.3 million, respectively, on life insurance policies covering current and former key officers. In December 2017 several policies were surrended, due to their lagging financial performance. This transaction resulted in net proceeds of $7.6 million after the effect of a tax penalty of $318 thousand. Total income for the policies during 2017 and 2016 was $115 thousand and $169 thousand, respectively.

DIVIDEND LIMITATIONS ON SUBSIDI

DIVIDEND LIMITATIONS ON SUBSIDIARY BANK	12 Months Ended
	Dec. 31, 2017
Equity [Abstract]
DIVIDEND LIMITATIONS ON SUBSIDIARY BANK	NOTE 16 DIVIDEND LIMITATIONS ON SUBSIDIARY BANK A principal source of funds of the Company is dividends paid by the Bank. The Federal Reserve Act restricts the amount of dividends the Bank may pay. Approval by the Board of Governors of the Federal Reserve System is required if the dividends declared by a state member bank, in any year, exceed the sum of (1) net income of the current year and (2) income net of dividends for the preceding two years.

LEASING ACTIVITIES

LEASING ACTIVITIES	12 Months Ended
	Dec. 31, 2017
Leases [Abstract]
LEASING ACTIVITIES	NOTE 17 LEASING ACTIVITIES Sale and Leaseback Transactions On May 31, 2017 the Bank, the wholly-owned subsidiary of the Company, sold four (4) of its properties, one each located in Abingdon, Bristol, Gate City and Castlewood, Virginia to a non affiliated third party for a total purchase price of $6.2 million. After selling expenses of $192 thousand, the net proceeds on the transactions were $6.0 million. The sales prices for the properties were based on outside appraisals obtained by the Bank. The Bank provided $4.9 million of financing to the purchaser for a term of 10 years for this transaction. In connection with the sale of the four properties, the Bank on May 31, 2017 entered into commercial lease agreements with the purchaser for the properties (the “Leases”), which will allow the Bank to continue to service customers from these locations. The Leases, which commenced on June 1, 2017, provide the Bank with use of the properties for an initial term of fifteen (15) years. Base rent payments for years 1 through 5 of the Leases are approximately $417 thousand a year. The base rent payments will increase by 8% for years 6 through 10 of the Leases and then by another 8% for years 11 through 15 of the Leases. The Bank has the option to renew the Leases five (5) times and each renewal would be for a term of five (5) years. The base rent for the renewals would be negotiated at the time the renewal option is exercised by the Bank. While the cash lease payments are currently $417 thousand a year, the Company is required to straight-line the expense over the initial term of fifteen (15) years. As a result, the annual lease expense will be approximately $451 thousand. The weighted average remaining life of the leases is 14.42 years. In anticipation of this transaction the Company early adopted ASU No. 2016-02 Leases (Topic 842). This ASU revised certain aspects of recognition, measurement, presentation, and disclosure of leasing transactions. As a result of this transaction the Company recognized right-to-use assets – operating leases of approximately $5.3 million, along with corresponding lease liabilities of approximately $5.3 million. The $5.3 million was determined by calculating the present value of the annual cash lease payments using a discount rate of 3.25%. The 3.25% discount rate was determined to be our fifteen (15) year incremental borrowing rate as of May 31, 2017. As a result of the sale and the determination that the corresponding leases were operating leases, the Company recognized a gain of $2.6 million on the sale and leaseback transactions. Kingsport Loan Production Office Lease The Bank entered into a commercial lease for office space in Kingsport, TN for use as a loan production office, which is expected to open during the 1 st As a result of this transaction the Company recognized a right-to-use asset – operating lease of approximately $73 thousand, along with corresponding lease liability of approximately $73 thousand. The $73 thousand was determined by calculating the present value of the annual cash lease payments using a discount rate of 2.17%. The 2.17% discount rate was determined to be our three (3) year incremental borrowing rate as of December 1, 2017. The Company’s operating lease cost for the year ended December 31, 2017 as a result of the transactions discussed above was $265 thousand. All other operating leases the Company has were evaluated and determined that they are immaterial to the financial statements. At December 31, 2017, future minimum rental commitments under the non-cancellable operating leases discussed above are as follows (dollars are in thousands): 2018 $ 441 2019 442 2020 440 2021 492 2022 436 Thereafter 4,415 Total $ 6,666

AVAILABLE LINES OF CREDIT AND F

AVAILABLE LINES OF CREDIT AND FEDERAL HOME LOAN BANK ADVANCES	12 Months Ended
	Dec. 31, 2017
Banking and Thrift [Abstract]
AVAILABLE LINES OF CREDIT AND FEDERAL HOME LOAN BANK ADVANCES	NOTE 18 AVAILABLE LINES OF CREDIT AND FEDERAL HOME LOAN BANK ADVANCES The following table presents the Bank’s Federal Home Loan Bank (“FHLB”) advances: December 31, (Dollars in thousands) 2017 2016 Advances from FHLB – short-term $ 558 $ 5,000 Advances from FHLB – long-term 7,000 8,758 Total Advances from FHLB $ 7,558 $ 13,758 Additional information on the Bank’s short-term FHLB advances: Years Ended December 31, (Dollars in thousands) 2017 2016 Maximum outstanding at any month-end during the year $ 6,200 $ 10,000 Average outstanding balance 1,981 2,477 Average interest rate for the year 1.82% 0.46% Average interest rate at year end 4.07% 0.69% The Bank has the ability to borrow up to an additional $122.5 million from the FHLB under a line of credit which is secured by a blanket lien on residential real estate loans. The Bank had no overnight borrowings subject to daily rate changes from the Federal Home Loan Bank at December 31, 2017 or 2016. At December 31, 2017 long-term FHLB advances consisted of $2.0 million at a rate of 0.99% due in 2019 and $5.0 million at a rate of 1.38% due in 2021. At December 31, 2016 long-term FHLB advances consisted of $708 thousand at a rate of 4.10% due in 2018, $1.05 million at a rate of 4.045% due in 2018, $2.0 million at a rate of .99% due in 2019 and $5.0 million at a rate of 1.38% due in 2021. Each of these borrowings is at fixed interest rates. We have used our line of credit with FHLB to issue letters of credit totaling $17.0 million to the Treasury Board of Virginia for collateral on public funds. No draws on the letters of credit have been issued. The letters of credit are considered draws on our Federal Home Loan Bank line of credit. We also had the ability to borrow $10.0 million in unsecured federal funds line of credit facilities with correspondent banks as of December 31, 2017 and 2016, respectively. As of December 31, 2017 and 2016, no balances were outstanding on these unsecured federal funds line of credit facilities. Additional information on unsecured federal funds line of credit facilities is as follows: Years Ended December 31, (Dollars in thousands) 2017 2016 Maximum outstanding at any month-end during the year $ 1,227 $ - Average outstanding balance 253 117 Average interest rate for the year 2.10% 1.36% Average interest rate at year end -% -%

FINANCIAL INSTRUMENTS WITH OFF-

FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK	12 Months Ended
	Dec. 31, 2017
Investments, All Other Investments [Abstract]
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK	NOTE 19 FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK In the normal course of business, the Bank has outstanding commitments and contingent liabilities, such as commitments to extend credit and standby letters of credit, which are not included in the accompanying consolidated financial statements. The Bank’s exposure to credit loss in the event of nonperformance by the other party to the financial instruments for commitments to extend credit and standby letters of credit is represented by the contractual or notional amount of those instruments. The Bank uses the same credit policies in making such commitments as it does for instruments that are included in the balance sheet. Financial instruments whose contract amount represents credit risk at December 31 were as follows: 2017 2016 (Dollars are in thousands) Commitments to extend credit $ 38,540 $ 34,770 Standby letters of credit 2,519 2,019 Commitments to extend credit are agreements to lend to a customer at either a fixed or variable interest rate as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Bank evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Bank upon extension of credit, is based on management’s credit evaluation. Collateral held varies but may include accounts receivable, inventory, property and equipment, and income-producing commercial properties. Standby letters of credit are conditional commitments issued by the Bank to guarantee the performance of a customer to a third party. Standby letters of credit generally have fixed expiration dates or other termination clauses and may require payment of a fee. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. The Bank’s policy for obtaining collateral, and the nature of such collateral, is essentially the same as that involved in making commitments to extend credit.

LEGAL CONTINGENCIES

LEGAL CONTINGENCIES	12 Months Ended
	Dec. 31, 2017
Commitments and Contingencies Disclosure [Abstract]
LEGAL CONTINGENCIES	NOTE 20 LEGAL CONTINGENCIES In the course of operations, we may become a party to legal proceedings. There are no pending or threatened legal proceedings to which the Company or any of its subsidiaries is a party or to which the property of the Company or any of its subsidiaries is subject that, in the opinion of management, may materially impact the financial condition of the Company, except for the following: On June 24, 2015 New Peoples Bank filed an Amended Complaint in the Circuit Court of Russell County Virginia against Arthur Wayne Bostic, Michael W. Bostic, Sr. and Jeffrey C. Bostic to enforce guarantees of loans made to Bostic Ford Sales, Inc. and seeking judgment against the guarantors for $1,427,709.76 with interest and legal fees. On July 24, 2015 Arthur Bostic filed a counterclaim against New Peoples Bank asserting lender liability theories of recovery. On March 8, 2016 Michael Bostic, Sr. and Jeffrey Bostic filed similar counterclaims against New Peoples Bank. In January 2018, the parties reached a settlement in the matter resolving all claims asserted by New Peoples against the guarantors and all claims asserted against New Peoples by the guarantors. A order dismissing all claims with prejudice was entered on February 7, 2018. This settlement had no material financial impact on our financial condition or results of operations. In 2015, New Peoples Bank filed suit in the Circuit Court for Washington County, Virginia, seeking payment from Ms. Sandra Campbell due to breach of a promissory note executed in 2013. Ms. Campbell asserted a Counterclaim alleging that the Bank’s requirement that she provide her personal guaranty on a loan sought by her husband’s company was a violation of the Equal Credit Opportunity Act. The counterclaim seeks damages in the amount of $825,000. The Bank filed a motion for summary judgment in its favor on its Complaint and as to Defendant’s Counterclaim in May 2016. A hearing has not yet been held on this motion. If the matter is not dismissed, the Bank plans a vigorous defense and does not believe that Ms. Campbell’s claims will be successful. In conjunction with the departure of Mr. Kenneth Hart, New Peoples’ former Chief Executive Officer, New Peoples entered into a separation agreement with him. Mr. Hart originally filed suit alleging various breaches by the Company and the Bank related to this and earlier agreements between the parties, which action was dismissed in April 2016 for failure to serve. He then refiled the suit on October 7, 2016, providing him another 12 months to have the Company and the Bank served. On October 3, 2017, the Company and Bank were served with the current complaint for breach of contract which is substantially the same as his original suit. Mr. Hart is asking the Court for an award of $1.5 million plus interest alleging a breach by the Company and the Bank of these various agreements with Mr. Hart. New Peoples filed a “demurrer” to the complaint, asking that the suit be dismissed, on October 23, 2017. New Peoples believes there is no merit to this suit or these claims which are based on conduct that occurred in 2010, and that the suit is a reaction to a judgment of over a million dollars awarded in favor of the Bank and against Mr. Hart in a separate matter. The Court has not yet ruled on this motion to dismiss. Should this suit not be dismissed, New Peoples intends to defend the matter vigorously to its conclusion and does not believe Mr. Hart’s claims will be successful. Jonathan Mullins, is a former President and Chief Executive Officer of New Peoples who departed in December 2014. In 2017 he filed a Complaint in the Circuit Court of Russell County, Virginia against New Peoples Bank. This is his second lawsuit against the Bank (the first was dismissed), and he seeks payment of deferred compensation pursuant to a 2009 agreement made with the Board of Directors, in which he alleges it agreed to payments of $50,000/year for 15 years beginning at age 65. At the time Mullins’ severance agreement was negotiated, the Bank determined that the accrued value of the deferred compensation at that time was $144,445. Mullins seeks either the $50,000 annual payments when he reaches age 65 or a lump sum payment of $144,445 with prejudgment interest from December 2014, along with $20,000 in severance pay and accrued leave. New Peoples filed its “demurrer” to this lawsuit in January 2018, requesting dismissal. The demurrer argues that the Bank cannot make these payments to Plaintiff in compliance with federal law, and therefore, Mullins’ case must be dismissed. A hearing has not been set on this motion. If the matter is not dismissed, New Peoples intends to defend the matter vigorously to its conclusion and does not believe that Mr. Mullin’s claims will be successful. In November 2017, Keith Carroll filed a complaint against New Peoples Bank in the United States District Court for the Western District of Virginia alleging violations of the Americans with Disabilities Act (the “ADA”). He has filed essentially the same lawsuit in multiple Virginia federal court divisions, alleging violations of the ADA against various banks and credit unions. Mr. Carroll is a blind individual and asserts that he attempted to do business with the Bank through its website, which he claims was inaccessible to him due to his disability. Mr. Carroll seeks injunctive relief and unspecified monetary damages, to include costs and attorneys’ fees. The Bank filed a Motion to Dismiss these claims. One of Mr. Carroll’s cases filed in the Eastern District of Virginia was recently dismissed on numerous grounds, including the ground that websites are not “places of public accommodation under the ADA,” and that even if they were, no regulations currently exist to govern them as such. The Bank has requested dismissal of this case for the same reason, among others. A hearing on the Bank’s motion is set for March 21, 2018. If the matter is not resolved on motions, New Peoples intends to defend the matter vigorously to its conclusion.

TRUST PREFERRED SECURITIES

TRUST PREFERRED SECURITIES	12 Months Ended
	Dec. 31, 2017
Notes to Financial Statements
TRUST PREFERRED SECURITIES	NOTE 21 TRUST PREFERRED SECURITIES The following table details the subordinated debt transactions outstanding: December 31, Shares 12/31/2017 Maturity Issued Interest Rate Interest Rate (1) Date 2017 2016 (Dollars in thousands) NPB Capital Trust I 341 3.96% 3 Month LIBOR plus 2.60% 7/7/2034 $ 11,341 $ 11,341 NPB Capital Trust 2 155 3.13% 3 Month LIBOR plus 1.77% 10/7/2036 5,155 5,155 $ 16,496 $ 16,496 (1) Interest rate on both NPB Capital Trust I and NPB Capital Trust 2 are a floating rate, which resets quarterly. Under the terms of the subordinated debt transactions, the securities have a 30-year maturity and are redeemable, in whole or in part, without penalty, at the option of the Company after five years of the issuance date. Due to the ability to defer interest and principal payments for 60 months without being considered in default, the regulatory agencies consider the trust preferred securities as Tier 1 capital up to certain limits. The Company is currently not deferring the quarterly interest payments on the trust preferred securities.

CAPITAL

CAPITAL	12 Months Ended
	Dec. 31, 2017
Banking and Thrift [Abstract]
CAPITAL	NOTE 22 CAPITAL Capital Requirements and Ratios The Bank is subject to various capital requirements administered by federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and, possibly, additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios (set forth in the following table) of total and Tier 1 capital (as defined) to risk-weighted assets (as defined), Tier 1 capital (as defined) to average assets (as defined), and Common Equity Tier 1 capital (as defined) to risk-weighted assets (as defined). As of December 31, 2017, the Bank meets all capital adequacy requirements to which it is subject. The Company meets eligibility criteria of a small bank holding company in accordance with the Federal Reserve Board’s Small Bank Holding Company Policy Statement issued in February 2015, and is no longer obligated to report consolidated regulatory capital. The Bank continues to be subject to various capital requirements administered by banking agencies. The Bank’s actual capital amounts and ratios are presented in the following table as of December 31, 2017 and 2016, respectively. These ratios comply with Federal Reserve rules to align with the Basel III Capital requirements effective January 1, 2015. Actual Minimum Capital Requirement Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions (Dollars are in thousands) Amount Ratio Amount Ratio Amount Ratio December 31, 2017: Total Capital to Risk Weighted Assets $ 68,787 15.30% $ 35,970 8.0% $ 44,962 10.0% Tier 1 Capital to Risk Weighted Assets 63,160 14.05% 26,977 6.0% 35,970 8.0% Tier 1 Capital to Average Assets 63,160 9.56% 26,422 4.0% 33,028 5.0% Common Equity Tier 1 Capital to Risk Weighted Assets 63,160 14.05% 20,233 4.5% 29,225 6.5% December 31, 2016: Total Capital to Risk Weighted Assets $ 67,549 16.64% $ 32,476 8.0% $ 40,595 10.0% Tier 1 Capital to Risk Weighted Assets 62,462 15.39% 24,357 6.0% 32,476 8.0% Tier 1 Capital to Average Assets 62,462 9.93% 25,149 4.0% 31,436 5.0% Common Equity Tier 1 Capital to Risk Weighted Assets 62,462 15.39% 18,268 4.5% 26,386 6.5% As of December 31, 2017, the Bank was well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized, an institution must maintain minimum total risk-based, Tier 1 risk-based, Tier 1 leverage, and Common Equity Tier 1 ratios as set forth in the above tables. There are no conditions or events since the notification that management believes have changed the Bank’s category. Under Basel III Capital requirements, beginning January 1, 2016, a capital conservation buffer of 0.625% became effective. The capital conservation buffer is 1.25% as of December 31, 2017 and the Bank met that requirement with a buffer of 7.30%. The capital conservation buffer will be gradually increased through January 1, 2019 to 2.5%. Banks will be required to maintain levels that meet the required minimum plus the capital conservation buffer in order to make distributions, such as dividends, or discretionary bonus payments. Common Stock Warrants The company issued common stock warrants as a result of the completion of its common stock offering in 2012. The warrants were immediately exercisable to purchase common stock over the next five years at a price of $1.75 per share with an expiration date of December 20, 2017. A summary of the activity in the common stock warrants as of December 31, 2017 and 2016 is as follows: 2017 2016 Number of Warrants Exercise Price Number of Warrants Exercise Price Outstanding and exercisable, beginning of year 881,978 $ 1.75 882,353 $ 1.75 Exercised (636,364) 1.75 (375) 1.75 Expired (245,614) 1.75 - - Outstanding and exercisable, end of year - $ - 881,978 $ 1.75 As a result of the exercises shown above an additional $1.1 million of capital was raised by the Company during 2017. The additional liquidity provided by the funds will be used by the Company to pay its operating expenses and trust preferred interest payments. Payment of Dividend to Company and Retirement of Stock On October 23, 2017, the Board of Directors approved for the Bank to pay the Company a dividend of $111 thousand using 68,735 shares of the Company’s common stock that had been repossessed by the Bank as a result of collection activities on loans. The Board of Directors then approved for the Company to retire the 68,735 shares of the Company’s common stock. By law the 68,735 shares of the Company’s common stock became part of the Company’s authorized and unissued shares and would be available for reissuance in the future.

FAIR VALUES

FAIR VALUES	12 Months Ended
	Dec. 31, 2017
Fair Value Disclosures [Abstract]
FAIR VALUES	NOTE 23 FAIR VALUES The financial reporting standard, “Fair Value Measurements and Disclosures” provides a framework for measuring fair value under generally accepted accounting principles and requires disclosures about the fair value of assets and liabilities recognized in the balance sheet in periods subsequent to initial recognition, whether the measurements are made on a recurring basis (for example, available for sale investment securities) or on a nonrecurring basis (for example, impaired loans and other real estate acquired through foreclosure). Fair value is the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Fair Value Measurements and Disclosures also establishes fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value: Level 1: Quoted prices in active markets for identical assets or liabilities. Level 1 assets and liabilities include debt and equity securities and derivative contracts that are traded in an exchange market, as well as U. S. Treasury, other U. S. Government and agency mortgage-backed debt securities that are highly liquid and are actively traded in over-the-counter markets. Level 2: Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 2 assets and liabilities include debt securities with quoted prices that are traded less frequently than exchange-traded instruments and derivative contracts whose value is determined using a pricing model with inputs that are observable in the market or can be derived principally from or corroborated by observable market data. This category generally includes certain derivative contracts and impaired loans. Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets and liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation. For example, this category generally includes certain private equity investments, retained residual interests in securitizations, residential mortgage servicing rights, and highly structured or long-term derivative contracts. Investment Securities Available for Sale – Loans - Foreclosed Assets – Assets and liabilities measured at fair value are as follows as of December 31, 2017 (for purpose of this table the impaired loans are shown net of the related allowance): (Dollars are in thousands) Quoted market price in active markets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) (On a recurring basis) Available for sale investments U.S. Government Agencies $ - $ 23,844 $ - Taxable municipals - 4,397 - Corporate bonds - 5,579 - Mortgage backed securities - 37,268 - (On a non-recurring basis) Other real estate owned - - 6,859 Impaired loans: Real estate secured: Commercial - - 4,650 Construction and land development - - 424 Residential 1-4 family - - 3,916 Multifamily - - 281 Farmland - - 1,399 Commercial - - 704 Agriculture - - 12 Consumer installment loans - - 8 All other loans - - - Total $ - $ 71,088 $ 18,253 Assets and liabilities measured at fair value are as follows as of December 31, 2016 (for purpose of this table the impaired loans are shown net of the related allowance): (Dollars are in thousands) Quoted market price in active markets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) (On a recurring basis) Available for sale investments U.S. Government Agencies $ - $ 24,632 $ - Taxable municipals - 2,292 - Corporate bonds - 3,749 - Mortgage backed securities - 39,338 - (On a non-recurring basis) Other real estate owned - - 10,655 Impaired loans: Real estate secured: Commercial - - 4,762 Construction and land development - - 139 Residential 1-4 family - - 4,360 Multifamily - - 301 Farmland - - 4,187 Commercial - - 49 Agriculture - - 19 Consumer installment loans - - 32 All other loans - - - Total $ - $ 70,011 $ 24,504 For Level 3 assets measured at fair value on a recurring or non-recurring basis as of December 31, 2017 and 2016, the significant unobservable inputs used in the fair value measurements were as follows: (Dollars in thousands) Fair Value at December 31, 2017 Fair Value at December 31, 2016 Valuation Technique Significant Unobservable Inputs General Range of Significant Unobservable Input Values Impaired Loans $ 11,394 $ 13,849 Appraised Value/Discounted Cash Flows/Market Value of Note Discounts to reflect current market conditions, ultimate collectability, and estimated costs to sell 0 – 18% Other Real Estate Owned $ 6,859 $ 10,655 Appraised Value/Comparable Sales/Other Estimates from Independent Sources Discounts to reflect current market conditions and estimated costs to sell 0 – 18% Fair Value of Financial Instruments Fair value information about financial instruments, whether or not recognized in the balance sheet, for which it is practical to estimate the value is based upon the characteristics of the instruments and relevant market information. Financial instruments include cash, evidence of ownership in an entity, or contracts that convey or impose on an entity that contractual right or obligation to either receive or deliver cash for another financial instrument. The following summary presents the methodologies and assumptions used to estimate the fair value of the Company’s financial instruments presented below. The information used to determine fair value is highly subjective and judgmental in nature and, therefore, the results may not be precise. Subjective factors include, among other things, estimates of cash flows, risk characteristics, credit quality, and interest rates, all of which are subject to change. Since the fair value is estimated as of the balance sheet date, the amounts that will actually be realized or paid upon settlement or maturity on these various instruments could be significantly different. The following presents the carrying amount, fair value, and placement in the fair value hierarchy of the Company’s financial instruments as of December 31, 2017 and 2016. This table excludes financial instruments for which the carrying amount approximates fair value. The carrying value of cash and due from banks, federal funds sold, interest-bearing deposits, deposits with no stated maturities, trust preferred securities and accrued interest approximates fair value. The remaining financial instruments were valued based on the present value of estimated future cash flows, discounted at various rates in effect for similar instruments during the months of December 2017 and 2016. Fair Value Measurements (Dollars are in thousands) Carrying Amount Fair Value Quoted market price in active markets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) December 31, 2017 Financial Instruments – Assets Net Loans $ 506,812 $ 506,608 $ - $ 495,214 $ 11,394 Financial Instruments – Liabilities Time Deposits 272,330 272,352 - 272,352 - FHLB Advances 7,558 7,794 - 7,794 - December 31, 2016 Financial Instruments – Assets Net Loans $ 462,557 $ 467,707 $ - $ 453,858 $ 13,849 Financial Instruments – Liabilities Time Deposits 247,819 247,258 - 247,258 - FHLB Advances 13,758 13,993 - 13,993 -

RECENT ACCOUNTING DEVELOPMENTS

RECENT ACCOUNTING DEVELOPMENTS	12 Months Ended
	Dec. 31, 2017
Accounting Changes and Error Corrections [Abstract]
RECENT ACCOUNTING DEVELOPMENTS	NOTE 24 RECENT ACCOUNTING DEVELOPMENTS The following is a summary of recent authoritative announcements: In May 2014, the Financial Accounting Standards Board (“FASB”) issued guidance to change the recognition of revenue from contracts with customers. The core principle of the new guidance is that an entity should recognize revenue to reflect the transfer of goods and services to customers in an amount equal to the consideration the entity receives or expects to receive. The guidance will be effective for the Company for reporting periods beginning after December 15, 2017. The Company will apply the guidance using a modified retrospective approach. The Company’s revenue is comprised of net interest income and noninterest income. The scope of the guidance explicitly excludes net interest income as well as many other revenues for financial assets and liabilities including loans, leases, securities, and derivatives. Accordingly, the majority of our revenues will not be affected. The Company is currently assessing our revenue contracts related to revenue streams that are within the scope of the standard. Our accounting policies will not change materially since the principles of revenue recognition from the ASU are largely consistent with existing guidance and current practices applied by our businesses. We have not identified material changes to the timing or amount of revenue recognition. Based on the updated guidance, we do anticipate changes in our disclosures associated with our revenues. We will provide qualitative disclosures of our performance obligations related to our revenue recognition and we continue to evaluate disaggregation for significant categories of revenue in the scope of the guidance. In August 2015, the FASB deferred the effective date of ASU 2014-09, Revenue from Contracts with Customers. As a result of the deferral the guidance in ASU 2014-09 will be effective for the Company for reporting periods beginning after December 15, 2017. The Company does not expect these amendments to have a material effect on its financial statements. In January 2016, the FASB amended the Financial Instruments topic of the Accounting Standards Codification (“ASC”), to address certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. The amendments will be effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company will apply the guidance by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. The amendments related to equity securities without readily determinable fair values will be applied prospectively to equity investments that exist as of the date of adoption of the amendments. The Company does not expect these amendments to have a material effect on its financial statements. In February 2016, the FASB amended the Leases topic of the ASC to revise certain aspects of recognition, measurement, presentation, and disclosure of leasing transactions. The amendments will be effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. As discussed in Note 17, the Company early adopted ASU No. 2016-02 Leases (Topic 842). In March 2016, the FASB amended the Revenue from Contracts with Customers topic of the ASC to clarify the implementation guidance on principal versus agent considerations and address how an entity should assess whether it is the principal or the agent in contracts that include three or more parties. The amendments will be effective for the Company for reporting periods beginning after December 15, 2017. The Company does not expect these amendments to have a material effect on its financial statements. In June 2016, the FASB issued guidance to change the accounting for credit losses and modify the impairment model for certain debt securities. The amendments will be effective for the Company for reporting periods beginning after December 15, 2019. Early adoption is permitted for all organizations for periods beginning after December 15, 2018. The Company will apply the amendments to the ASU through a cumulative-effect adjustment to retained earnings as of the beginning of the year of adoption. While early adoption is permitted beginning in first quarter 2019, we do not expect to elect that option. We are evaluating the impact of the ASU on our consolidated financial position, results of operations, and cash flows. In addition to our allowance for loan losses, we will also record an allowance for credit losses on debt securities instead of applying the impairment model currently utilized. The amount of the adjustments will be impacted by each portfolio’s composition and credit quality at the adoption date as well as economic conditions and forecasts at that time. In December 2016, the FASB issued technical corrections and improvements to the Revenue from Contracts with Customers Topic. These corrections make a limited number of revisions to several pieces of the revenue recognition standard issued in 2014. The effective date and transition requirements for the technical corrections will be effective for the Company for reporting periods beginning after December 15, 2017. The Company will apply the guidance using a modified retrospective approach. The Company does not expect these amendments to have a material effect on its financial statements. In January 2017, the FASB updated the Accounting Changes and Error Corrections and the Investments—Equity Method and Joint Ventures Topics of the Accounting Standards Codification. The ASU incorporates into the Accounting Standards Codification recent SEC guidance about disclosing, under SEC SAB Topic 11.M, the effect on financial statements of adopting the revenue, leases, and credit losses standards. The ASU was effective upon issuance. The Company is currently evaluating the impact on additional disclosure requirements as each of the standards is adopted, however it does not expect these amendments to have a material effect on its financial position, results of operations or cash flows. In February 2017, the FASB amended the Other Income Topic of the ASC to clarify the scope of the guidance on nonfinancial asset derecognition as well as the accounting for partial sales of nonfinancial assets. The amendments conform the derecognition guidance on nonfinancial assets with the model for transactions in the new revenue standard. The amendments will be effective for the Company for reporting periods beginning after December 15, 2017. The Company does not expect these amendments to have a material effect on its financial statements. In February 2018, the FASB Issued (ASU 2018-02), Income Statement (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, which requires Companies to reclassify the stranded effects in other comprehensive income to retained earnings as a result of the change in the tax rates under the Tax Cuts and Jobs Act. The Company has opted to early adopt this pronouncement by retrospective application to each period (or periods) in which the effect of the change in the tax rate under the Tax Cuts and Jobs Act is recognized. The impact of the reclassification from other comprehensive income to retained earnings is $98 thousand as of December 31, 2017. Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies are not expected to have a material impact on the Company’s financial position, results of operations or cash flows.

PARENT CORPORATION ONLY FINANCI

PARENT CORPORATION ONLY FINANCIAL STATEMENTS	12 Months Ended
	Dec. 31, 2017
Condensed Financial Information of Parent Company Only Disclosure [Abstract]
PARENT CORPORATION ONLY FINANCIAL STATEMENTS	NOTE 25 PARENT CORPORATION ONLY FINANCIAL STATEMENTS CONDENSED BALANCE SHEETS AS OF DECEMBER 31, 2017 AND 2016 (Dollars in Thousands) ASSETS 2017 2016 Due from banks $ 1,220 $ 813 Investment in subsidiaries 65,057 62,158 Other assets 1,360 587 Total Assets $ 67,637 $ 63,558 LIABILITIES Accrued interest payable $ 139 $ 125 Accrued expenses and other liabilities 29 20 Trust preferred securities 16,496 16,496 Total Liabilities 16,664 16,641 STOCKHOLDERS’ EQUITY Common stock - $2.00 par value, 50,000,000 shares authorized; 23,922,086 and 23,354,457 shares issued and outstanding at December 31, 2017 and 2016, respectively 47,844 46,709 Common stock warrants - 764 Additional paid capital 14,570 13,965 Retained deficit (10,847) (14,065) Accumulated other comprehensive loss (594) (456) Total Stockholders’ Equity 50,973 46,917 Total Liabilities and Stockholders’ Equity $ 67,637 $ 63,558 CONDENSED STATEMENTS OF INCOME FOR THE YEARS ENDED DECEMBER 31, 2017 AND 2016 (Dollars in Thousands) 2017 2016 Income Miscellaneous income $ 17 $ 15 Dividends from subsidiaries 111 - Undistributed income of subsidiaries 2,939 1,615 Total income 3,067 1,630 Expenses Trust preferred securities interest expense 592 508 Professional fees 92 105 Other operating expenses 62 59 Total Expenses 746 672 Income before Income Taxes 2,321 958 Income Tax Expense (Benefit) (773) - Net Income $ 3,094 $ 958 CONDENSED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2017 AND 2016 (Dollars in Thousands) 2017 2016 Cash Flows From Operating Activities Net income $ 3,094 $ 958 Adjustments to reconcile net income to net cash used in operating activities: Income of subsidiaries (3,050) (1,615) Net change in: Other assets (773) 2 Other liabilities 23 22 Net Cash Used in Operating Activities (706) (633) Cash Flows From Financing Activities Exercise of common stock warrants 1,113 1 Net Cash Provided by Financing Activities 1,113 1 Net increase (decrease) in Cash and Cash Equivalents 407 (632) Cash and Cash Equivalents, Beginning of year 813 1,445 Cash and Cash Equivalents, End of Year $ 1,220 $ 813 Supplemental Disclosure of Cash Paid During the Year for: Interest $ 578 $ 487 Taxes $ - $ - Supplemental Disclosure of Non Cash Transactions: Retirement of common stock $ (111) $ - Payment of in-kind dividend to the Company from the Bank $ 111 $ -

SELECTED QUARTERLY INFORMATION

SELECTED QUARTERLY INFORMATION (UNAUDITED)	12 Months Ended
	Dec. 31, 2017
Quarterly Financial Information Disclosure [Abstract]
SELECTED QUARTERLY INFORMATION (UNAUDITED)	NOTE 26 SELECTED QUARTERLY INFORMATION (UNAUDITED) 2017 QUARTERS (Dollars in thousands except per share data) Fourth Third Second First Income statement Net interest income $ 5,845 $ 5,779 $ 5,791 $ 5,365 Noninterest income 1,905 1,808 4,409 1,714 Provision for loan losses 450 - - - Noninterest expense 7,229 7,098 7,623 6,978 Net income (loss) (82) 484 2,577 115 Earnings (loss) per share, basic (0.00) 0.02 0.11 0.00 Earnings (loss) per share, diluted (0.00) 0.02 0.11 0.00 Period end balance sheet Total loans receivable $ 513,008 $ 501,390 $ 488,764 $ 476,490 Total assets 666,700 665,236 659,761 647,594 Total deposits 582,544 581,616 576,346 572,751 Total stockholders’ equity 50,973 50,355 50,013 47,092 2011 Quarters 2016 QUARTERS (Dollars in thousands except per share data) Fourth Third Second First Income statement Net interest income $ 5,420 $ 5,453 $ 5,402 $ 5,451 Noninterest income 1,909 2,043 1,753 1,586 Provision for loan losses - - (500) - Noninterest expense 8,300 7,155 6,776 6,337 Net income (loss) (968) 346 882 698 Earnings (loss) per share, basic (0.04) 0.01 0.04 0.03 Earnings (loss) per share, diluted (0.04) 0.01 0.04 0.03 Period end balance sheet Total loans receivable $ 468,629 $ 464,721 $ 459,613 $ 450,309 Total assets 634,335 633,867 632,311 636,459 Total deposits 554,438 556,516 555,084 555,216 Total stockholders’ equity 46,917 48,785 48,485 47,234

SUMMARY OF SIGNIFICANT ACCOUN34

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Dec. 31, 2017
Accounting Policies [Abstract]
Basis of Presentation and Consolidation	Basis of Presentation and Consolidation
Use of Estimates	Use of Estimates -
Cash and Cash Equivalents	Cash and Cash Equivalents
Investment Securities	Investment Securities The amortization of premiums and accretion of discounts are recognized in interest income using the effective interest method over the period to maturity. Realized gains and losses on dispositions are based on the net proceeds and the adjusted book value of the securities sold, using the specific identification method. Realized gains (losses) on securities available-for-sale are included in noninterest income and, when applicable, are reported as a reclassification adjustment, net of tax, in other comprehensive income. Unrealized gains and losses on investment securities available for sale are based on the difference between book value and fair value of each security. These gains and losses are credited or charged to other comprehensive income, net of tax, whereas realized gains and losses flow through the statements of income.
Loans	Loans – It is the Company’s policy to stop accruing interest on a loan, and classify that loan as non-accrual under the following circumstances: (a) whenever we are advised by the borrower that scheduled payment or interest payments cannot be met, (b) when our best judgment indicates that payment in full of principal and interest can no longer be expected, or (c) when any such loan or obligation becomes delinquent for 90 days unless it is both well secured and in the process of collection. All interest accrued but not collected for loans that are place on nonaccrual or charged off is reversed against interest income, except in the case of a nonaccrual loan that is well secured and in the process of collection, in which case, the interest accrued but not collected is not reversed. The interest on these loans is accounted for on the cash basis or cost-recovery method, until qualifying for return to accrual. Generally, loans are returned to accrual status when all the principal and interest amounts contractually due are brought current, six consecutive timely payments are made, and prospects for future contractual payments are reasonably assured. A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan by loan basis for commercial and construction loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral dependent.
Significant Group Concentration of Credit Risk	Significant Group Concentrations of Credit Risk –
Allowance for Loan Losses	Allowance for Loan Losses – The allowance is increased by a provision for loan losses, which is charged to expense and reduced by charge-offs, net of recoveries. Loans are charged against the allowance for loan losses when management believes that collectability of all or part of the principal is unlikely. Past due status is determined based on contractual terms. In regard to our consumer and consumer real estate loan portfolio, the Company uses the guidance found in the Uniform Retail Credit Classification and Account Management Policy which affects our estimate of the allowance for loan losses. Under this approach, a consumer or consumer real estate loan must initially have a credit risk grade of Pass or better. Subsequently, if the loan becomes contractually 90 days past due or the borrower files for bankruptcy protection, the loan is downgraded to Substandard and placed in nonaccrual status. If the loan is unsecured, upon being deemed Substandard, the entire loan amount is charged off. For non 1-4 family residential loans that are 90 days past due or greater, or in bankruptcy, the collateral value less estimated liquidation costs is compared to the loan balance to calculate any potential deficiency. If the collateral is sufficient then no charge-off is necessary. If a deficiency exists, then upon the loan becoming contractually 120 days past due, the deficiency is charged-off against the allowance for loan loss. In the case of 1-4 family residential or home equity loans, upon the loan becoming 120 days past due, a current value is obtained and after application of an estimated liquidation discount, a comparison is made to the loan balance to calculate any deficiency. Subsequently, any noted deficiency is then charged-off against the allowance for loan loss when the loan becomes contractually 180 days past due. If the customer has filed bankruptcy, then within 60 days of the bankruptcy notice, any calculated deficiency is charged-off against the allowance for loan loss. Collection efforts continue by means of repossessions or foreclosures, and upon bank ownership, liquidation ensues.
Other Real Estate Owned	Other Real Estate Owned
Bank Premises and Equipment	Bank Premises and Equipment Type Estimated useful life Buildings 39 years Paving and landscaping 15 years Computer equipment and software 3 to 5 years Vehicles 5 years Furniture and other equipment 5 to 10 years Leashold improvements are amortized over the terms of the respective leases or the estimated useful lives of the improvements, whichever is shorter. Repairs and maintenance costs are recorded as a component of noninterest expense as incurred.
Common Stock Warrants	Common Stock Warrants
Income Taxes	Income Taxes The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not the tax postion will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such positions are then measured based on the largest benefit that has a greater than 50% likelihood of being realized upon settlement. See Note 10, Income Taxes, for additional information. The Company records any penalties and interest attributed to uncertain tax positions as a component of income tax expenses. The Company has adopted ASU 2018-02, “Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income” which is considered a change in accounting principle. Because the required adjustment of deferred taxes is required to be included in income from continuing operations, the tax effects of items within accumulated other comprehensive income (commonly referred to as “stranded” tax effects) would not reflect the appropriate tax rate. Adoption of this ASU eliminates the “stranded” tax effects associated with the change in the federal corporate income tax rate in the Tax Cuts and Jobs Act of 2017. The Company has reclassified “stranded” tax effects totaling $98 thousand from accumulated other comprehensive income (loss) to retained earnings and these reclassified amounts are reflected in the accompanying Consolidated Balance Sheets, Consolidated Statements of Comprehensive Income, and Consolidated Statements of Stockholders’ Equity.
Income Per Share	Income Per Share
Financial Instruments - Off-balance-sheet instruments	Financial Instruments – Off-balance-sheet instruments
Comprehensive Income (Loss)	Comprehensive Income (Loss)
Advertising Cost	Advertising Cost
Reclassification	Reclassification
Subsequent Events	Subsequent Events

SUMMARY OF SIGNIFICANT ACCOUN35

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	12 Months Ended
	Dec. 31, 2017
Accounting Policies [Abstract]
Schedule of Estimated Useful Lives	Depreciation is computed using the straight-line method over the following estimated useful lives: Type Estimated useful life Buildings 39 years Paving and landscaping 15 years Computer equipment and software 3 to 5 years Vehicles 5 years Furniture and other equipment 5 to 10 years

INCOME PER SHARE (Tables)

INCOME PER SHARE (Tables)	12 Months Ended
	Dec. 31, 2017
Income Per Share Tables
Schedule of Basic and Diluted Net Loss Per Common Share Calculations	Basic and diluted net income per common share calculations follows: (Amounts in Thousands, Except For the years ended Share and Per Share Data) December 31, 2017 2016 Net income $ 3,094 $ 958 Weighted average shares outstanding 23,472,012 23,354,155 Weighted average dilutive shares outstanding 23,472,012 23,354,155 Basic and diluted income per share $ 0.13 $ 0.04

INVESTMENT SECURITIES (Tables)

INVESTMENT SECURITIES (Tables)	12 Months Ended
	Dec. 31, 2017
Investment securities activity:
Schedule of Securities Amortized Cost and Estimated Fair Value	The amortized cost and estimated fair value of securities (all available-for-sale) are as follows: Gross Gross Approximate Amortized Unrealized Unrealized Fair (Dollars are in thousands) Cost Gains Losses Value December 31, 2017 U.S. Government Agencies $ 23,986 $ 79 $ 221 $ 23,844 Taxable municipals 4,466 9 78 4,397 Corporate bonds 5,437 168 26 5,579 Mortgage backed securities 37,950 3 685 37,268 Total Securities AFS $ 71,839 $ 259 $ 1,010 $ 71,088 December 31, 2016 U.S. Government Agencies $ 24,821 $ 80 $ 269 $ 24,632 Taxable municipals 2,340 2 50 2,292 Corporate bonds 3,600 149 - 3,749 Mortgage backed securities 39,941 25 628 39,338 Total Securities AFS $ 70,702 $ 256 $ 947 $ 70,011
Schedule of Fair Value and Gross Unrealized Losses on Investment Securities In A Continuous Unrealized Loss Position	This information is aggregated by the length of time that individual securities have been in a continuous unrealized loss position as of December 31, 2017 and December 31, 2016. Less than 12 Months 12 Months or More Total (Dollars are in thousands) Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses December 31, 2017 U.S. Government Agencies $ 7,840 $ 69 $ 7,189 $ 152 $ 15,029 $ 221 Taxable municipals 2,403 44 767 34 3,170 78 Corporate bonds 1,507 26 - - 1,507 26 Mtg. backed securities 14,720 145 21,500 540 36,220 685 Total Securities AFS $ 26,470 $ 284 $ 29,456 $ 726 $ 55,926 $ 1,010 December 31, 2016 U.S. Government Agencies $ 12,081 $ 250 $ 2,449 $ 19 $ 14,530 $ 269 Taxable municipals 1,561 50 - - 1,561 50 Corporate bonds 500 - - - 500 - Mtg. backed securities 28,680 543 4,655 85 33,335 628 Total Securities AFS $ 42,822 $ 843 $ 7,104 $ 104 $ 49,926 $ 947
Schedule of gross realized gains and losses pertaining to the sale of investment securities available for sale	Gross realized gains and losses pertaining to the sale of investment securities available for sale are detailed as follows: For the years ended December 31, (Dollars are in thousands) 2017 2016 Gross gains realized $ 30 $ 366 Gross losses realized (30) (63) Net realized gains $ - $ 30
Amortized Cost and Fair Value Of Investment Securities Contractual Maturity	The amortized cost and fair value of investment securities at December 31, 2017, by contractual maturity, are shown in the following schedule. Weighted (Dollars are in thousands) Amortized Fair Average Securities Available for Sale Cost Value Yield Due in one year or less $ 7 $ 7 1.49% Due after one year through five years 3,316 3,267 1.97% Due after five years through ten years 15,822 15,847 3.10% Due after ten years 52,694 51,967 2.24% Total $ 71,839 $ 71,088 2.42%

LOANS (Tables)

LOANS (Tables)	12 Months Ended
	Dec. 31, 2017
Receivables [Abstract]
Summary of Loans Receivable Outstanding	Loans receivable outstanding at December 31, are summarized as follows: (Dollars are in thousands) 2017 2016 Real estate secured: Commercial $ 127,688 $ 103,331 Construction and land development 29,763 25,755 Residential 1-4 family 249,159 249,700 Multifamily 15,481 12,582 Farmland 22,998 24,948 Total real estate loans 445,089 416,316 Commercial 41,345 26,955 Agriculture 3,494 3,164 Consumer installment loans 22,411 22,188 All other loans 669 6 Total loans $ 513,008 $ 468,629
Summary of Loans Receivable on Nonaccrual Status	Loans receivable on nonaccrual status at December 31, are summarized as follows: (Dollars are in thousands) 2017 2016 Real estate secured: Commercial $ 2,035 $ 3,403 Construction and land development 470 319 Residential 1-4 family 2,991 8,355 Multifamily 152 166 Farmland 800 1,003 Total real estate loans 6,448 13,246 Commercial 1,065 - Agriculture 3 83 Consumer installment loans 48 76 Total loans receivable on nonaccrual status $ 7,564 $ 13,405
Summary of Impaired Loans	The following table presents information concerning the Company’s investment in loans considered impaired as of December 31, 2017 and December 31, 2016: As of December 31, 2017 (Dollars are in thousands) Average Recorded Investment Interest Income Recognized Recorded Investment Unpaid Principal Balance Related Allowance With no related allowance recorded: Real estate secured: Commercial $ 2,910 $ 122 $ 2,646 $ 2,719 $ - Construction and land development 87 6 424 680 - Residential 1-4 family 3,779 198 3,586 3,885 - Multifamily 377 20 281 321 - Farmland 2,283 59 1,264 1,664 - Commercial 126 12 628 628 - Agriculture 17 1 12 12 - Consumer installment loans 12 1 8 8 - All other loans - - - - - With an allowance recorded: Real estate secured: Commercial 1,467 102 2,503 2,622 499 Construction and land development 177 - - - - Residential 1-4 family 591 19 421 437 91 Multifamily 528 - - - - Farmland 614 22 378 378 243 Commercial 323 26 489 572 413 Agriculture 1 - - - - Consumer installment loans 2 - - - - All other loans - - - - - Total $ 13,294 $ 588 $ 12,640 $ 13,926 $ 1,246 As of December 31, 2016 (Dollars are in thousands) Average Recorded Investment Interest Income Recognized Recorded Investment Unpaid Principal Balance Related Allowance With no related allowance recorded: Real estate secured: Commercial $ 4,104 $ 147 $ 3,636 $ 4,055 $ - Construction and land development 72 1 5 5 - Residential 1-4 family 3,745 192 3,861 4,182 - Multifamily 290 21 301 342 - Farmland 4,148 184 3,895 4,601 - Commercial - - - - - Agriculture 27 2 19 19 - Consumer installment loans 25 1 26 43 - All other loans - - - - - With an allowance recorded: Real estate secured: Commercial 1,469 8 1,191 1,270 65 Construction and land development 265 - 240 469 106 Residential 1-4 family 862 22 555 565 56 Multifamily 80 - - - - Farmland 575 27 591 602 299 Commercial 70 3 67 67 18 Agriculture 86 1 5 5 5 Consumer installment loans 26 1 9 9 3 All other loans - - - - - Total $ 15,844 $ 610 $ 14,401 $ 16,234 $ 552
Summary of Age Analysis of Past Due Loans Receivable	An age analysis of past due loans receivable is below. At December 31, 2017 and 2016, there were no loans over 90 days past due that were accruing. As of December 31, 2017 (Dollars are in thousands) Loans 30-59 Days Past Due Loans 60-89 Days Past Due Loans 90 or More Days Past Due Total Past Due Loans Current Loans Total Loans Real estate secured: Commercial $ 190 $ 2,396 $ 453 $ 3,039 $ 124,649 $ 127,688 Construction and land development 69 246 42 357 29,406 29,763 Residential 1-4 family 3,789 378 969 5,136 244,023 249,159 Multifamily 125 89 - 214 15,267 15,481 Farmland 309 - - 309 22,689 22,998 Total real estate loans 4,482 3,109 1,464 9,055 436,034 445,089 Commercial 103 25 603 731 40,614 41,345 Agriculture 38 - - 38 3,456 3,494 Consumer installment Loans 102 15 28 145 22,266 22,411 All other loans - - - - 669 669 Total loans $ 4,725 $ 3,149 $ 2,095 $ 9,969 $ 503,039 $ 513,008 As of December 31, 2016 (Dollars are in thousands) Loans 30-59 Days Past Due Loans 60-89 Days Past Due Loans 90 or More Days Past Due Total Past Due Loans Current Loans Total Loans Real estate secured: Commercial $ 1,676 $ 307 $ 1,083 $ 3,066 $ 100,265 $ 103,331 Construction and land development 103 17 44 164 25,591 25,755 Residential 1-4 family 4,237 1,547 2,233 8,017 241,683 249,700 Multifamily 1,367 - - 1,367 11,215 12,582 Farmland 2,987 - - 2,987 21,961 24,948 Total real estate loans 10,370 1,871 3,360 15,601 400,715 416,316 Commercial 20 - - 20 26,935 26,955 Agriculture 19 - 78 97 3,067 3,164 Consumer installment Loans 110 15 36 161 22,027 22,188 All other loans - - - - 6 6 Total loans $ 10,519 $ 1,886 $ 3,474 $ 15,879 $ 452,750 $ 468,629
Summary of Risk Category of Loans Receivable	Based on the most recent analysis performed, the risk category of loans receivable was as follows: As of December 31, 2017 (Dollars are in thousands) Pass Special Mention Substandard Total Real estate secured: Commercial $ 120,104 $ 3,228 $ 4,356 $ 127,688 Construction and land development 28,462 816 485 29,763 Residential 1-4 family 243,048 1,810 4,301 249,159 Multifamily 13,695 1,445 341 15,481 Farmland 19,273 2,445 1,280 22,998 Total real estate loans 424,582 9,744 10,763 445,089 Commercial 37,973 2,307 1,065 41,345 Agriculture 3,468 23 3 3,494 Consumer installment loans 22,357 2 52 22,411 All other loans 669 - - 669 Total $ 489,049 $ 12,076 11,883 $ 513,008 As of December 31, 2016 (Dollars are in thousands) Pass Special Mention Substandard Total Real estate secured: Commercial $ 92,562 $ 6,922 $ 3,847 $ 103,331 Construction and land development 23,905 1,531 319 25,755 Residential 1-4 family 238,400 2,117 9,183 249,700 Multifamily 10,848 1,367 367 12,582 Farmland 19,070 1,545 4,333 24,948 Total real estate loans 384,785 13,482 18,049 416,316 Commercial 26,197 691 67 26,955 Agriculture 3,076 - 88 3,164 Consumer installment loans 22,086 - 102 22,188 All other loans 6 - - 6 Total $ 436,150 $ 14,173 18,306 $ 468,629

ALLOWANCE FOR LOAN LOSSES (Tabl

ALLOWANCE FOR LOAN LOSSES (Tables)	12 Months Ended
	Dec. 31, 2017
Receivables [Abstract]
Summary of Activity in the Allowance for Loan Losses	The following table details activity in the allowance for loan losses by portfolio segment for the period ended December 31, 2017. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories. As of December 31, 2017 (Dollars are in thousands) Beginning Balance Charge Offs Recoveries Provisions Ending Balance Real estate secured: Commercial $ 1,625 $ (179) $ 193 $ 350 $ 1,989 Construction and land development 346 (1) - (154) 191 Residential 1-4 family 2,376 (714) 48 690 2,400 Multifamily 241 - - (135) 106 Farmland 428 (49) 361 (325) 415 Total real estate loans 5,016 (943) 602 426 5,101 Commercial 163 (11) 153 355 660 Agriculture 31 (4) 5 (12) 20 Consumer installment loans 123 (147) 19 161 156 All other loans - - - 3 3 Unallocated 739 - - (483) 256 Total $ 6,072 $ (1,105) $ 779 $ 450 $ 6,196 Allowance for Loan Losses Recorded Investment in Loans As of December 31, 2017 (Dollars are in thousands) Individually Evaluated for Impairment Collectively Evaluated for Impairment Total Individually Evaluated for Impairment Collectively Evaluated for Impairment Total Real estate secured: Commercial $ 499 $ 1,490 $ 1,989 $ 5,149 $ 122,539 $ 127,688 Construction and land development - 191 191 424 29,339 29,763 Residential 1-4 family 91 2,309 2,400 4,007 245,152 249,159 Multifamily - 106 106 281 15,200 15,481 Farmland 243 172 415 1,642 21,356 22,998 Total real estate loans 833 4,268 5,101 11,503 433,586 445,089 Commercial 413 247 660 1,117 40,228 41,345 Agriculture - 20 20 12 3,482 3,494 Consumer installment loans - 156 156 8 22,403 22,411 All other loans - 3 3 - 669 669 Unallocated - 256 256 - - - Total $ 1,246 $ 4,950 6,196 $ 12,640 $ 500,368 $ 513,008
Schedule of Allocation of Portion of Allowance	Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories. As of December 31, 2016 (Dollars are in thousands) Beginning Balance Charge Offs Recoveries Provisions Ending Balance Real estate secured: Commercial $ 2,384 $ (557) $ 220 $ (422) $ 1,625 Construction and land development 332 (5) 26 (7) 346 Residential 1-4 family 2,437 (720) 87 572 2,376 Multifamily 232 (18) - 27 241 Farmland 675 (2) 103 (348) 428 Total real estate loans 6,060 (1,302) 436 (178) 5,016 Commercial 266 (65) 62 (100) 163 Agriculture 124 - 7 (100) 31 Consumer installment loans 128 (83) 24 54 123 All other loans 1 - - (1) - Unallocated 914 - - (175) 739 Total $ 7,493 $ (1,450) $ 529 $ (500) $ 6,072 Allowance for Loan Losses Recorded Investment in Loans As of December 31, 2016 (Dollars are in thousands) Individually Evaluated for Impairment Collectively Evaluated for Impairment Total Individually Evaluated for Impairment Collectively Evaluated for Impairment Total Real estate secured: Commercial $ 65 $ 1,560 $ 1,625 $ 4,827 $ 98,504 $ 103,331 Construction and land development 106 240 346 245 25,510 25,755 Residential 1-4 family 56 2,320 2,376 4,416 245,284 249,700 Multifamily - 241 241 301 12,281 12,582 Farmland 299 129 428 4,486 20,462 24,948 Total real estate loans 526 4,490 5,016 14,275 402,041 416,316 Commercial 18 145 163 67 26,888 26,955 Agriculture 5 26 31 24 3,140 3,164 Consumer installment loans 3 120 123 35 22,153 22,188 All other loans - - - - 6 6 Unallocated - 739 739 - - - Total $ 552 $ 5,520 6,072 $ 14,401 $ 454,228 $ 468,629

TROUBLED DEBT RESTRUCTURINGS (T

TROUBLED DEBT RESTRUCTURINGS (Tables)	12 Months Ended
	Dec. 31, 2017
Notes to Financial Statements
Schedule Of Loans Modified As Troubled Debt Restructurings	The following table presents information related to loans modified as troubled debt restructurings during the years ended December 31, 2017 and 2016. December 31, 2017 December 31, 2016 Troubled Debt Restructurings (Dollars are in thousands) # of Loans Pre-Mod. Recorded Investment Post-Mod. Recorded Investment # of Loans Pre-Mod. Recorded Investment Post-Mod. Recorded Investment Real estate secured: Commercial - $ - $ - 1 $ 341 $ 336 Construction and land Development - - - - - - Residential 1-4 family - - - 2 420 402 Multifamily - - - - - - Farmland - - - 1 291 268 Total real estate loans - - - 4 1,052 1,006 Commercial 1 443 437 - - - Agriculture - - - - - - Consumer installment loans - - - - - - All other loans - - - - - - Total 1 $ 443 $ 437 4 $ 1,052 $ 1,006

BANK PREMISES AND EQUIPMENT (Ta

BANK PREMISES AND EQUIPMENT (Tables)	12 Months Ended
	Dec. 31, 2017
Property, Plant and Equipment [Abstract]
Bank Premises and Equipment	Depreciation expense for 2017 and 2016 was $2.5 million and 2.4 million, respectively. Bank premises and equipment at December 31, are summarized as follows: (Dollars are in thousands) 2017 2016 Land $ 8,130 $ 9,115 Buildings and improvements 18,866 22,889 Furniture and equipment 22,190 20,369 49,186 52,373 Less accumulated depreciation (23,071) (22,388) Bank Premises and Equipment $ 26,115 $ 29,985

INCOME TAXES (Tables)

INCOME TAXES (Tables)	12 Months Ended
	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Schedule of pre-tax book income	The source of pre-tax book income is summarized as follows for the years ended December 31: (Dollars are in thousands) 2017 2016 Pre-tax book income Domestic $ 3,238 $ 949 Total pre-tax book income $ 3,238 $ 949
Schedule of Components of Income Tax Expense	Income tax expense (benefit) is summarized as follows for the years ended December 31: (Dollars are in thousands) 2017 2016 Current income tax expense (benefit) Federal $ 337 $ - State - (7) Total current income tax expense (benefit) 337 (7) Deferred income tax expense (benefit) Federal (193) (2) State - - Total deferred income tax expense (193) (2) Income tax expense (benefit) $ 144 $ (9)
Schedule of Net Deferred Tax Assets and Liabilities	The net deferred tax assets and liabilities resulting from temporary differences as of December 31 are summarized as follows: (Dollars are in thousands) 2017 2016 Deferred Tax Assets Allowance for loan losses $ 1,301 $ 2,064 Deferred compensation 89 147 Accrued employee benefits - 15 Nonaccrual loan interest 504 896 Other real estate owned 264 1,911 Repossessed assets - 12 Amortization of core deposits 51 101 Amortization of goodwill 260 514 Capitalized interest and repair expense 25 41 Net operating loss carryforward 3,444 5,648 AMT carryforward 339 320 Unrealized loss on securities available for sale 158 235 Total Assets, gross 6,435 11,904 Valuation allowance - (5,317) Total Assets, net 6,435 6,587 Deferred Tax Liabilities Accelerated depreciation 607 867 Accrued employee benefits 38 - Prepaid expenses 20 38 Deferred loan costs 271 397 Total Liabilities, gross 936 1,302 Net Deferred Tax Asset $ 5,499 $ 5,285
Schedule of Reconciliation of Income Tax Expense	The following table summarizes the differences between the actual income tax expense and the amounts computed using the federal statutory tax rate of 34%: (Dollars are in thousands) 2017 2016 Income tax expense (benefit) at the applicable federal rate $ 1,101 $ 323 Permanent differences resulting from: Nondeductible expenses 15 7 Tax exempt interest income (35) (44) State income taxes less federal tax effect - 5 Bank owned life insurance (39) (57) Remeasurement of deferred taxes under TCJA 4,046 - Deferred tax valuation allowance change, net (5,317) (338) Penalty on surrender of bank owned life insurance 318 - Other adjustments 55 95 Income tax expense (benefit) $ 144 $ (9)

TIME DEPOSITS (Tables)

TIME DEPOSITS (Tables)	12 Months Ended
	Dec. 31, 2017
Notes to Financial Statements
Schedule of Maturities	The aggregate amount of time deposits that meet or exceed the FDIC Insurance limit of $250,000 was $25.3 million and $13.0 million at December 31, 2017 and 2016, respectively. We have brokered deposits totaling $2.7 million at December 31, 2017 and 2016, respectively. At December 31, 2017, the scheduled maturities of time deposits are as follows (dollars are in thousands): 2018 $ 171,073 2019 31,096 2020 24,340 2021 26,706 2022 19,115 After five years - Total $ 272,330

OTHER REAL ESTATE OWNED (Tables

OTHER REAL ESTATE OWNED (Tables)	12 Months Ended
	Dec. 31, 2017
Real Estate [Abstract]
Other Real Estate	The following table summarizes the activity in other real estate owned for the years ended December 31, 2017 and 2016: 2017 2016 (Dollars are in thousands) Balance, beginning of year $ 10,655 $ 12,398 Additions 3,087 4,577 Purchases of/improvements to other real estate owned - 48 Transfers of premises and equipment to other real estate owned 125 - Transfers of other real estate owned to premises and equipment - (125) Proceeds from sales of other real estate owned (4,742) (4,232) Proceeds from insurance claims (12) - Loans made to finance sales of Other real estate owned (1,477) (818) Adjustment of carrying value (758) (1,414) Deferred gain from sales 45 - Gain (loss) from sales (64) 221 Balance, end of year $ 6,859 $ 10,655

LEASING ACTIVITIES (Tables)

LEASING ACTIVITIES (Tables)	12 Months Ended
	Dec. 31, 2017
Leasing Activities Tables
Schedule of future minimum rental commitments under the non-cancellable operating leases	At December 31, 2017, future minimum rental commitments under the non-cancellable operating leases discussed above are as follows (dollars are in thousands): 2018 $ 441 2019 442 2020 440 2021 492 2022 436 Thereafter 4,415 Total $ 6,666

AVAILABLE LINES OF CREDIT AND46

AVAILABLE LINES OF CREDIT AND FEDERAL HOME LOAN BANK ADVANCES (Tables)	12 Months Ended
	Dec. 31, 2017
Available Lines Of Credit And Federal Home Loan Bank Advances Tables
Schedule of Bank's Federal Home Loan Bank ("FHLB") advances	The following table presents the Bank’s Federal Home Loan Bank (“FHLB”) advances: December 31, (Dollars in thousands) 2017 2016 Advances from FHLB – short-term $ 558 $ 5,000 Advances from FHLB – long-term 7,000 8,758 Total Advances from FHLB $ 7,558 $ 13,758
Schedule of Bank's short-term FHLB advances	Additional information on the Bank’s short-term FHLB advances: Years Ended December 31, (Dollars in thousands) 2017 2016 Maximum outstanding at any month-end during the year $ 6,200 $ 10,000 Average outstanding balance 1,981 2,477 Average interest rate for the year 1.82% 0.46% Average interest rate at year end 4.07% 0.69%
Schedule of unsecured federal funds line of credit facilities	Additional information on unsecured federal funds line of credit facilities is as follows: Years Ended December 31, (Dollars in thousands) 2017 2016 Maximum outstanding at any month-end during the year $ 1,227 $ - Average outstanding balance 253 117 Average interest rate for the year 2.10% 1.36% Average interest rate at year end -% -%

FINANCIAL INSTRUMENTS WITH OF47

FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK (Tables)	12 Months Ended
	Dec. 31, 2017
Investments, All Other Investments [Abstract]
Schedule of Financial Instruments with Credit Risk	Financial instruments whose contract amount represents credit risk at December 31 were as follows: 2017 2016 (Dollars are in thousands) Commitments to extend credit $ 38,540 $ 34,770 Standby letters of credit 2,519 2,019

TRUST PREFERRED SECURITIES (Tab

TRUST PREFERRED SECURITIES (Tables)	12 Months Ended
	Dec. 31, 2017
Trust Preferred Securities Tables
Schedule of subordinated debt transactions	The following table details the subordinated debt transactions outstanding: December 31, Shares 12/31/2017 Maturity Issued Interest Rate Interest Rate (1) Date 2017 2016 (Dollars in thousands) NPB Capital Trust I 341 3.96% 3 Month LIBOR plus 2.60% 7/7/2034 $ 11,341 $ 11,341 NPB Capital Trust 2 155 3.13% 3 Month LIBOR plus 1.77% 10/7/2036 5,155 5,155 $ 16,496 $ 16,496 (1) Interest rate on both NPB Capital Trust I and NPB Capital Trust 2 are a floating rate, which resets quarterly.

CAPITAL (Tables)

CAPITAL (Tables)	12 Months Ended
	Dec. 31, 2017
Banking and Thrift [Abstract]
Schedule of Capital Requirements	These ratios comply with Federal Reserve rules to align with the Basel III Capital requirements effective January 1, 2015. Actual Minimum Capital Requirement Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions (Dollars are in thousands) Amount Ratio Amount Ratio Amount Ratio December 31, 2017: Total Capital to Risk Weighted Assets $ 68,787 15.30% $ 35,970 8.0% $ 44,962 10.0% Tier 1 Capital to Risk Weighted Assets 63,160 14.05% 26,977 6.0% 35,970 8.0% Tier 1 Capital to Average Assets 63,160 9.56% 26,422 4.0% 33,028 5.0% Common Equity Tier 1 Capital to Risk Weighted Assets 63,160 14.05% 20,233 4.5% 29,225 6.5% December 31, 2016: Total Capital to Risk Weighted Assets $ 67,549 16.64% $ 32,476 8.0% $ 40,595 10.0% Tier 1 Capital to Risk Weighted Assets 62,462 15.39% 24,357 6.0% 32,476 8.0% Tier 1 Capital to Average Assets 62,462 9.93% 25,149 4.0% 31,436 5.0% Common Equity Tier 1 Capital to Risk Weighted Assets 62,462 15.39% 18,268 4.5% 26,386 6.5%
Summary of Common Stock Warrants Outstanding	A summary of the activity in the common stock warrants as of December 31, 2017 and 2016 is as follows: 2017 2016 Number of Warrants Exercise Price Number of Warrants Exercise Price Outstanding and exercisable, beginning of year 881,978 $ 1.75 882,353 $ 1.75 Exercised (636,364) 1.75 (375) 1.75 Expired (245,614) 1.75 - - Outstanding and exercisable, end of year - $ - 881,978 $ 1.75

FAIR VALUES (Tables)

FAIR VALUES (Tables)	12 Months Ended
	Dec. 31, 2017
Fair Value Disclosures [Abstract]
Summary of Assets And Liabilities Measured at Fair Value	Assets and liabilities measured at fair value are as follows as of December 31, 2017 (for purpose of this table the impaired loans are shown net of the related allowance): (Dollars are in thousands) Quoted market price in active markets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) (On a recurring basis) Available for sale investments U.S. Government Agencies $ - $ 23,844 $ - Taxable municipals - 4,397 - Corporate bonds - 5,579 - Mortgage backed securities - 37,268 - (On a non-recurring basis) Other real estate owned - - 6,859 Impaired loans: Real estate secured: Commercial - - 4,650 Construction and land development - - 424 Residential 1-4 family - - 3,916 Multifamily - - 281 Farmland - - 1,399 Commercial - - 704 Agriculture - - 12 Consumer installment loans - - 8 All other loans - - - Total $ - $ 71,088 $ 18,253 Assets and liabilities measured at fair value are as follows as of December 31, 2016 (for purpose of this table the impaired loans are shown net of the related allowance): (Dollars are in thousands) Quoted market price in active markets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) (On a recurring basis) Available for sale investments U.S. Government Agencies $ - $ 24,632 $ - Taxable municipals - 2,292 - Corporate bonds - 3,749 - Mortgage backed securities - 39,338 - (On a non-recurring basis) Other real estate owned - - 10,655 Impaired loans: Real estate secured: Commercial - - 4,762 Construction and land development - - 139 Residential 1-4 family - - 4,360 Multifamily - - 301 Farmland - - 4,187 Commercial - - 49 Agriculture - - 19 Consumer installment loans - - 32 All other loans - - - Total $ - $ 70,011 $ 24,504
Schedule of Significant Unobservable Inputs In Level 3 Assets	For Level 3 assets measured at fair value on a recurring or non-recurring basis as of December 31, 2017 and 2016, the significant unobservable inputs used in the fair value measurements were as follows: (Dollars in thousands) Fair Value at December 31, 2017 Fair Value at December 31, 2016 Valuation Technique Significant Unobservable Inputs General Range of Significant Unobservable Input Values Impaired Loans $ 11,394 $ 13,849 Appraised Value/Discounted Cash Flows/Market Value of Note Discounts to reflect current market conditions, ultimate collectability, and estimated costs to sell 0 – 18% Other Real Estate Owned $ 6,859 $ 10,655 Appraised Value/Comparable Sales/Other Estimates from Independent Sources Discounts to reflect current market conditions and estimated costs to sell 0 – 18%
Estimated Fair Value of Financial Instruments	The remaining financial instruments were valued based on the present value of estimated future cash flows, discounted at various rates in effect for similar instruments during the months of December 2017 and 2016. Fair Value Measurements (Dollars are in thousands) Carrying Amount Fair Value Quoted market price in active markets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) December 31, 2017 Financial Instruments – Assets Net Loans $ 506,812 $ 506,608 $ - $ 495,214 $ 11,394 Financial Instruments – Liabilities Time Deposits 272,330 272,352 - 272,352 - FHLB Advances 7,558 7,794 - 7,794 - December 31, 2016 Financial Instruments – Assets Net Loans $ 462,557 $ 467,707 $ - $ 453,858 $ 13,849 Financial Instruments – Liabilities Time Deposits 247,819 247,258 - 247,258 - FHLB Advances 13,758 13,993 - 13,993 -

PARENT CORPORATION ONLY FINAN51

PARENT CORPORATION ONLY FINANCIAL STATEMENTS (Tables)	12 Months Ended
	Dec. 31, 2017
Condensed Financial Information of Parent Company Only Disclosure [Abstract]
Parent Corporation Only Condensed Balance Sheets	CONDENSED BALANCE SHEETS AS OF DECEMBER 31, 2017 AND 2016 (Dollars in Thousands) ASSETS 2017 2016 Due from banks $ 1,220 $ 813 Investment in subsidiaries 65,057 62,158 Other assets 1,360 587 Total Assets $ 67,637 $ 63,558 LIABILITIES Accrued interest payable $ 139 $ 125 Accrued expenses and other liabilities 29 20 Trust preferred securities 16,496 16,496 Total Liabilities 16,664 16,641 STOCKHOLDERS’ EQUITY Common stock - $2.00 par value, 50,000,000 shares authorized; 23,922,086 and 23,354,457 shares issued and outstanding at December 31, 2017 and 2016, respectively 47,844 46,709 Common stock warrants - 764 Additional paid capital 14,570 13,965 Retained deficit (10,847) (14,065) Accumulated other comprehensive loss (594) (456) Total Stockholders’ Equity 50,973 46,917 Total Liabilities and Stockholders’ Equity $ 67,637 $ 63,558
Parent Corporation Only Condensed Statements of Income (Loss)	CONDENSED STATEMENTS OF INCOME FOR THE YEARS ENDED DECEMBER 31, 2017 AND 2016 (Dollars in Thousands) 2017 2016 Income Miscellaneous income $ 17 $ 15 Dividends from subsidiaries 111 - Undistributed income of subsidiaries 2,939 1,615 Total income 3,067 1,630 Expenses Trust preferred securities interest expense 592 508 Professional fees 92 105 Other operating expenses 62 59 Total Expenses 746 672 Income before Income Taxes 2,321 958 Income Tax Expense (Benefit) (773) - Net Income $ 3,094 $ 958
Parent Corporation Only Condensed Statements of Cash Flows	CONDENSED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2017 AND 2016 (Dollars in Thousands) 2017 2016 Cash Flows From Operating Activities Net income $ 3,094 $ 958 Adjustments to reconcile net income to net cash used in operating activities: Income of subsidiaries (3,050) (1,615) Net change in: Other assets (773) 2 Other liabilities 23 22 Net Cash Used in Operating Activities (706) (633) Cash Flows From Financing Activities Exercise of common stock warrants 1,113 1 Net Cash Provided by Financing Activities 1,113 1 Net increase (decrease) in Cash and Cash Equivalents 407 (632) Cash and Cash Equivalents, Beginning of year 813 1,445 Cash and Cash Equivalents, End of Year $ 1,220 $ 813 Supplemental Disclosure of Cash Paid During the Year for: Interest $ 578 $ 487 Taxes $ - $ - Supplemental Disclosure of Non Cash Transactions: Retirement of common stock $ (111) $ - Payment of in-kind dividend to the Company from the Bank $ 111 $ -

SELECTED QUARTERLY INFORMATIO52

SELECTED QUARTERLY INFORMATION (Tables)	12 Months Ended
	Dec. 31, 2017
Quarterly Financial Information Disclosure [Abstract]
Schedule of Selected Quarterly Information	2017 QUARTERS (Dollars in thousands except per share data) Fourth Third Second First Income statement Net interest income $ 5,845 $ 5,779 $ 5,791 $ 5,365 Noninterest income 1,905 1,808 4,409 1,714 Provision for loan losses 450 - - - Noninterest expense 7,229 7,098 7,623 6,978 Net income (loss) (82) 484 2,577 115 Earnings (loss) per share, basic (0.00) 0.02 0.11 0.00 Earnings (loss) per share, diluted (0.00) 0.02 0.11 0.00 Period end balance sheet Total loans receivable $ 513,008 $ 501,390 $ 488,764 $ 476,490 Total assets 666,700 665,236 659,761 647,594 Total deposits 582,544 581,616 576,346 572,751 Total stockholders’ equity 50,973 50,355 50,013 47,092 2011 Quarters 2016 QUARTERS (Dollars in thousands except per share data) Fourth Third Second First Income statement Net interest income $ 5,420 $ 5,453 $ 5,402 $ 5,451 Noninterest income 1,909 2,043 1,753 1,586 Provision for loan losses - - (500) - Noninterest expense 8,300 7,155 6,776 6,337 Net income (loss) (968) 346 882 698 Earnings (loss) per share, basic (0.04) 0.01 0.04 0.03 Earnings (loss) per share, diluted (0.04) 0.01 0.04 0.03 Period end balance sheet Total loans receivable $ 468,629 $ 464,721 $ 459,613 $ 450,309 Total assets 634,335 633,867 632,311 636,459 Total deposits 554,438 556,516 555,084 555,216 Total stockholders’ equity 46,917 48,785 48,485 47,234

SUMMARY OF SIGNIFICANT ACCOUN53

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of Estimated Useful Lives (Details)	12 Months Ended
	Dec. 31, 2017
Buildings
Estimated useful life	39 years
Paving and Landscaping
Estimated useful life	15 years
Computer equipment and software | Minimum [Member]
Estimated useful life	3 years
Computer equipment and software | Maximum [Member]
Estimated useful life	5 years
Vehicles
Estimated useful life	5 years
Furniture and other equipment | Minimum [Member]
Estimated useful life	5 years
Furniture and other equipment | Maximum [Member]
Estimated useful life	10 years

INCOME PER SHARE (Details)

INCOME PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Accounting Policies [Abstract]
Net income	$ 3,094	$ 958
Weighted average shares outstanding	23,472,012	23,354,155
Weighted average dilutive shares outstanding	23,472,012	23,354,155
Basic and diluted income per share	$ 0.13	$ 0.04

DEPOSITS IN AND FEDERAL FUNDS55

DEPOSITS IN AND FEDERAL FUNDS SOLD TO BANKS (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Federal funds sold and cash on deposit	$ 14,500	$ 16,900
Unsecured Fed Funds
Line of Credit	$ 5,000	$ 5,000
MInimum Balance Required	200

INVESTMENT SECURITIES (Details)

INVESTMENT SECURITIES (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Amortized Cost	$ 71,839	$ 70,702
Gross Unrealized Gains	259	256
Gross Unrealized Losses	1,010	947
Approximate Fair Value	71,088	70,011
US Government Agencies [Member]
Amortized Cost	23,986	24,821
Gross Unrealized Gains	79	80
Gross Unrealized Losses	221	269
Approximate Fair Value	23,844	24,632
Taxable Municipals [Member]
Amortized Cost	4,466	2,340
Gross Unrealized Gains	9	2
Gross Unrealized Losses	78	50
Approximate Fair Value	4,397	2,292
Corporate Bonds [Member]
Amortized Cost	5,437	3,600
Gross Unrealized Gains	168	149
Gross Unrealized Losses	26
Approximate Fair Value	5,579	3,749
Mortgage Backed Securities [Member]
Amortized Cost	37,950	39,941
Gross Unrealized Gains	3	25
Gross Unrealized Losses	685	628
Approximate Fair Value	$ 37,268	$ 39,338

INVESTMENT SECURITIES (Details

INVESTMENT SECURITIES (Details 1) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Fair Value, Less than 12 Months	$ 26,470	$ 42,822
Unrealized Losses, Less than 12 Months	284	843
Fair Value, 12 Months or More	29,456	7,104
Unrealized Losses, 12 Months or More	726	104
Fair Value, Total	55,926	49,926
Unrealized Losses, Total	1,010	947
US Government Agencies [Member]
Fair Value, Less than 12 Months	7,840	12,081
Unrealized Losses, Less than 12 Months	69	250
Fair Value, 12 Months or More	7,189	2,449
Unrealized Losses, 12 Months or More	152	19
Fair Value, Total	15,029	14,530
Unrealized Losses, Total	221	269
Taxable Municipals [Member]
Fair Value, Less than 12 Months	2,403	1,561
Unrealized Losses, Less than 12 Months	44	50
Fair Value, 12 Months or More	767
Unrealized Losses, 12 Months or More	34
Fair Value, Total	3,170	1,561
Unrealized Losses, Total	78	50
Corporate Bonds [Member]
Fair Value, Less than 12 Months	1,507	500
Unrealized Losses, Less than 12 Months	26
Fair Value, 12 Months or More
Unrealized Losses, 12 Months or More
Fair Value, Total	1,507	500
Unrealized Losses, Total	26
Mortgage Backed Securities [Member]
Fair Value, Less than 12 Months	14,720	28,680
Unrealized Losses, Less than 12 Months	145	543
Fair Value, 12 Months or More	21,500	4,655
Unrealized Losses, 12 Months or More	540	85
Fair Value, Total	36,220	33,335
Unrealized Losses, Total	$ 685	$ 628

INVESTMENT SECURITIES (Detail58

INVESTMENT SECURITIES (Details 2) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Investment securities activity:
Gross gains realized	$ 30	$ 366
Gross losses realized	(30)	(63)
Net realized gains		$ 303

INVESTMENT SECURITIES (Detail59

INVESTMENT SECURITIES (Details 3) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Investment securities activity:
Due in one year or less, Amortized Cost	$ 7
Due after one year through five years, Amortized Cost	3,316
Due after five years through ten years, Amortized Cost	15,822
Due after ten years, Amortized Cost	52,694
Amortized Cost, Total	71,839	$ 70,702
Due in one year or less, Fair Value	7
Due after one year through five years, Fair Value	3,267
Due after five years through ten years, Fair Value	15,847
Due after ten years, Fair Value	51,967
Approximate Fair Value	$ 71,088	$ 70,011
Due in one year or less, Weighted Average Yield	1.49%
Due after one year through five years, Weighted Average Yield	1.97%
Due after five years through ten years, Weighted Average Yield	3.10%
Due after ten years, Weighted Average Yield	2.24%
Weighted Average Yield, Total	2.42%

INVESTMENT SECURITIES (Detail60

INVESTMENT SECURITIES (Details Narrative) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Investment securities activity:
Securities pledged as collateral	$ 11,000	$ 11,300

LOANS (Details)

LOANS (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Total loans and leases	$ 513,008	$ 468,629
Real Estate [Member]
Total loans and leases	445,089	416,316
Commercial
Total loans and leases	41,345	26,955
Commercial | Real Estate [Member]
Total loans and leases	127,688	103,331
Construction and Land Development | Real Estate [Member]
Total loans and leases	29,763	25,755
Residential 1-4 Family | Real Estate [Member]
Total loans and leases	249,159	249,700
Multifamily | Real Estate [Member]
Total loans and leases	15,481	12,582
Farmland | Real Estate [Member]
Total loans and leases	22,998	24,948
Commercial Real Estate [Member]
Total loans and leases	41,345	26,955
Agriculture
Total loans and leases	3,494	3,164
Consumer Installment Loans
Total loans and leases	22,411	22,188
Other Loans
Total loans and leases	$ 669	$ 6

LOANS (Details 1)

LOANS (Details 1) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Total loans receivable on nonaccrual status	$ 7,564	$ 13,405
Real Estate [Member]
Total loans receivable on nonaccrual status	6,448	13,246
Commercial
Total loans receivable on nonaccrual status	1,065
Commercial | Real Estate [Member]
Total loans receivable on nonaccrual status	2,035	3,403
Construction and Land Development | Real Estate [Member]
Total loans receivable on nonaccrual status	470	319
Residential 1-4 Family | Real Estate [Member]
Total loans receivable on nonaccrual status	2,991	8,355
Multifamily | Real Estate [Member]
Total loans receivable on nonaccrual status	152	166
Farmland | Real Estate [Member]
Total loans receivable on nonaccrual status	800	1,003
Agriculture
Total loans receivable on nonaccrual status	3	83
Consumer Installment Loans
Total loans receivable on nonaccrual status	$ 48	$ 76

LOANS (Details 2)

LOANS (Details 2) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Average Recorded Investment	$ 13,294	$ 15,844
Interest Income Recognized	588	610
Recorded Investment	12,640	14,401
Unpaid Principal Balance	13,926	16,234
Related Allowance	1,246	552
Consumer Installment Loans | Impaired Financing Receivables With No Related Allowance [Member]
Average Recorded Investment	12	25
Interest Income Recognized	1	1
Recorded Investment	8	26
Unpaid Principal Balance	8	43
Related Allowance
Consumer Installment Loans | Impaired Financing Receivables With Related Allowance [Member]
Average Recorded Investment	2	26
Interest Income Recognized		1
Recorded Investment		9
Unpaid Principal Balance		9
Related Allowance		3
Agriculture | Impaired Financing Receivables With No Related Allowance [Member]
Average Recorded Investment	17	27
Interest Income Recognized	1	2
Recorded Investment	12	19
Unpaid Principal Balance	12	19
Related Allowance
Agriculture | Impaired Financing Receivables With Related Allowance [Member]
Average Recorded Investment	1	86
Interest Income Recognized		1
Recorded Investment		5
Unpaid Principal Balance		5
Related Allowance		5
Commercial Real Estate [Member] | Impaired Financing Receivables With No Related Allowance [Member]
Average Recorded Investment	126
Interest Income Recognized	12
Recorded Investment	628
Unpaid Principal Balance	628
Related Allowance
Commercial Real Estate [Member] | Impaired Financing Receivables With Related Allowance [Member]
Average Recorded Investment	323	70
Interest Income Recognized	26	3
Recorded Investment	489	67
Unpaid Principal Balance	572	67
Related Allowance	413	18
Multifamily | Real Estate [Member] | Impaired Financing Receivables With No Related Allowance [Member]
Average Recorded Investment	377	290
Interest Income Recognized	20	21
Recorded Investment	281	301
Unpaid Principal Balance	321	342
Related Allowance
Multifamily | Real Estate [Member] | Impaired Financing Receivables With Related Allowance [Member]
Average Recorded Investment	528	80
Interest Income Recognized
Recorded Investment
Unpaid Principal Balance
Commercial Real Estate [Member] | Real Estate [Member] | Impaired Financing Receivables With No Related Allowance [Member]
Average Recorded Investment	2,910	4,104
Interest Income Recognized	122	147
Recorded Investment	2,646	3,636
Unpaid Principal Balance	2,719	4,055
Commercial Real Estate [Member] | Real Estate [Member] | Impaired Financing Receivables With Related Allowance [Member]
Average Recorded Investment	1,467	1,469
Interest Income Recognized	102	8
Recorded Investment	2,503	1,191
Unpaid Principal Balance	2,622	1,270
Related Allowance	499	65
Construction and Land Development | Real Estate [Member] | Impaired Financing Receivables With No Related Allowance [Member]
Average Recorded Investment	87	72
Interest Income Recognized	6	1
Recorded Investment	424	5
Unpaid Principal Balance	680	5
Related Allowance
Construction and Land Development | Real Estate [Member] | Impaired Financing Receivables With Related Allowance [Member]
Average Recorded Investment	177	265
Interest Income Recognized
Recorded Investment		240
Unpaid Principal Balance		469
Related Allowance		106
Residential 1-4 Family | Real Estate [Member] | Impaired Financing Receivables With No Related Allowance [Member]
Average Recorded Investment	3,779	3,745
Interest Income Recognized	198	192
Recorded Investment	3,586	3,861
Unpaid Principal Balance	3,885	4,182
Residential 1-4 Family | Real Estate [Member] | Impaired Financing Receivables With Related Allowance [Member]
Average Recorded Investment	591	862
Interest Income Recognized	19	22
Recorded Investment	421	555
Unpaid Principal Balance	437	565
Related Allowance	91	56
Farmland | Real Estate [Member] | Impaired Financing Receivables With No Related Allowance [Member]
Average Recorded Investment	2,283	4,148
Interest Income Recognized	59	184
Recorded Investment	1,264	3,895
Unpaid Principal Balance	1,664	4,601
Related Allowance
Farmland | Real Estate [Member] | Impaired Financing Receivables With Related Allowance [Member]
Average Recorded Investment	614	575
Interest Income Recognized	22	27
Recorded Investment	378	591
Unpaid Principal Balance	378	602
Related Allowance	$ 243	$ 299

LOANS (Details 3)

LOANS (Details 3) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Loans 30-59 Days Past Due	$ 4,725	$ 10,519
Loans 60-89 Days Past Due	3,149	1,886
Loans 90 or More Days Past Due	2,095	3,474
Total Past Due Loans	9,969	15,879
Current Loans	503,039	452,750
Total loans and leases	513,008	468,629
Real Estate [Member]
Loans 30-59 Days Past Due	4,482	10,370
Loans 60-89 Days Past Due	3,109	1,871
Loans 90 or More Days Past Due	1,464	3,360
Total Past Due Loans	9,055	15,601
Current Loans	436,034	400,715
Total loans and leases	445,089	416,316
Residential 1-4 Family | Real Estate [Member]
Loans 30-59 Days Past Due	3,789	4,237
Loans 60-89 Days Past Due	378	1,547
Loans 90 or More Days Past Due	969	2,233
Total Past Due Loans	5,136	8,017
Current Loans	244,023	241,683
Total loans and leases	249,159	249,700
Commercial
Loans 30-59 Days Past Due	103	20
Loans 60-89 Days Past Due	25
Loans 90 or More Days Past Due	603
Total Past Due Loans	731	20
Current Loans	40,614	26,935
Total loans and leases	41,345	26,955
Commercial | Real Estate [Member]
Loans 30-59 Days Past Due	190	1,676
Loans 60-89 Days Past Due	2,396	307
Loans 90 or More Days Past Due	453	1,083
Total Past Due Loans	3,039	3,066
Current Loans	124,649	100,265
Total loans and leases	127,688	103,331
Multifamily | Real Estate [Member]
Loans 30-59 Days Past Due	125	1,367
Loans 60-89 Days Past Due	89
Loans 90 or More Days Past Due
Total Past Due Loans	214	1,367
Current Loans	15,267	11,215
Total loans and leases	15,481	12,582
Agriculture
Loans 30-59 Days Past Due	38	19
Loans 60-89 Days Past Due
Loans 90 or More Days Past Due		78
Total Past Due Loans	38	97
Current Loans	3,456	3,067
Total loans and leases	3,494	3,164
Consumer Installment Loans
Loans 30-59 Days Past Due	102	110
Loans 60-89 Days Past Due	15	15
Loans 90 or More Days Past Due	28	36
Total Past Due Loans	145	161
Current Loans	22,266	22,027
Total loans and leases	22,411	22,188
Other Loans
Loans 30-59 Days Past Due
Loans 60-89 Days Past Due
Loans 90 or More Days Past Due
Total Past Due Loans
Current Loans	669	6
Total loans and leases	669	6
Farmland | Real Estate [Member]
Loans 30-59 Days Past Due	309	2,987
Loans 60-89 Days Past Due
Loans 90 or More Days Past Due
Total Past Due Loans	309	2,987
Current Loans	22,689	21,961
Total loans and leases	22,998	24,948
Construction and Land Development | Real Estate [Member]
Loans 30-59 Days Past Due	69	103
Loans 60-89 Days Past Due	246	17
Loans 90 or More Days Past Due	42	44
Total Past Due Loans	357	164
Current Loans	29,406	25,591
Total loans and leases	$ 29,763	$ 25,755

LOANS (Details 4)

LOANS (Details 4) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Total	$ 513,008	$ 468,629
Real Estate [Member]
Total	445,089	416,316
Pass
Total	489,049	436,150
Special Mention
Total	12,076	14,173
Substandard
Total	11,883	18,306
Real Estate [Member] | Pass
Total	424,582	384,785
Real Estate [Member] | Special Mention
Total	9,744	13,482
Real Estate [Member] | Substandard
Total	10,763	18,049
Commercial Portfolio Segment [Member] | Pass
Total	37,973	26,197
Commercial Portfolio Segment [Member] | Special Mention
Total	2,307	691
Commercial Portfolio Segment [Member] | Substandard
Total	1,065	67
Commercial Portfolio Segment [Member] | Real Estate [Member] | Pass
Total	120,104	92,562
Commercial Portfolio Segment [Member] | Real Estate [Member] | Special Mention
Total	3,228	6,922
Commercial Portfolio Segment [Member] | Real Estate [Member] | Substandard
Total	4,356	3,847
Construction and Land Development | Real Estate [Member]
Total	29,763	25,755
Construction and Land Development | Real Estate [Member] | Pass
Total	28,462	23,905
Construction and Land Development | Real Estate [Member] | Special Mention
Total	816	1,531
Construction and Land Development | Real Estate [Member] | Substandard
Total	485	319
Residential 1-4 Family | Real Estate [Member]
Total	249,159	249,700
Residential 1-4 Family | Real Estate [Member] | Pass
Total	243,048	238,400
Residential 1-4 Family | Real Estate [Member] | Special Mention
Total	1,810	2,117
Residential 1-4 Family | Real Estate [Member] | Substandard
Total	4,301	9,183
Multifamily | Real Estate [Member]
Total	15,481	12,582
Multifamily | Real Estate [Member] | Pass
Total	13,695	10,848
Multifamily | Real Estate [Member] | Special Mention
Total	1,445	1,367
Multifamily | Real Estate [Member] | Substandard
Total	341	367
Farmland | Real Estate [Member]
Total	22,998	24,948
Farmland | Real Estate [Member] | Pass
Total	19,273	19,070
Farmland | Real Estate [Member] | Special Mention
Total	2,445	1,545
Farmland | Real Estate [Member] | Substandard
Total	1,280	4,333
Agriculture
Total	3,494	3,164
Agriculture | Pass
Total	3,468	3,076
Agriculture | Special Mention
Total	23
Agriculture | Substandard
Total	3	88
Consumer Installment Loans
Total	22,411	22,188
Consumer Installment Loans | Pass
Total	22,357	22,086
Consumer Installment Loans | Special Mention
Total	2
Consumer Installment Loans | Substandard
Total	52	102
Other Loans
Total	669	6
Other Loans | Pass
Total	669	6
Other Loans | Special Mention
Total
Other Loans | Substandard
Total
Commercial
Total	41,345	26,955
Commercial | Real Estate [Member]
Total	$ 127,688	$ 103,331

ALLOWANCE FOR LOAN LOSSES (Deta

ALLOWANCE FOR LOAN LOSSES (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Balance, beginning of year	$ 6,072	$ 7,493
Charge Offs	(1,105)	(1,450)
Recoveries	779	529
Provision for loan losses	450	(500)
Balance, End of period	6,196	6,072
Commercial Real Estate [Member]
Balance, beginning of year	163	266
Charge Offs	(11)	(65)
Recoveries	153	62
Provision for loan losses	355	(100)
Balance, End of period	660	163
Agriculture
Balance, beginning of year	31	124
Charge Offs	(4)
Recoveries	5	7
Provision for loan losses	(12)	(100)
Balance, End of period	20	31
Consumer Installment Loans
Balance, beginning of year	123	128
Charge Offs	(147)	(83)
Recoveries	19	24
Provision for loan losses	161	54
Balance, End of period	156	123
Other Loans
Balance, beginning of year		1
Charge Offs
Recoveries
Provision for loan losses	3	(1)
Balance, End of period	3
Unallocated
Balance, beginning of year	739	914
Charge Offs
Recoveries
Provision for loan losses	(483)	(175)
Balance, End of period	256	739
Real Estate [Member]
Balance, beginning of year	5,016	6,060
Charge Offs	(943)	(1,302)
Recoveries	602	436
Provision for loan losses	426	(178)
Balance, End of period	5,101	5,016
Real Estate [Member] | Commercial Real Estate [Member]
Balance, beginning of year	1,625	2,384
Charge Offs	(179)	(557)
Recoveries	193	220
Provision for loan losses	350	(422)
Balance, End of period	1,989	1,625
Real Estate [Member] | Construction and Land Development
Balance, beginning of year	346	332
Charge Offs	(1)	(5)
Recoveries		26
Provision for loan losses	(154)	(7)
Balance, End of period	191	346
Real Estate [Member] | Residential 1-4 Family
Balance, beginning of year	2,376	2,437
Charge Offs	(714)	(720)
Recoveries	48	87
Provision for loan losses	690	572
Balance, End of period	2,400	2,376
Real Estate [Member] | Multifamily
Balance, beginning of year	241	232
Charge Offs		(18)
Recoveries
Provision for loan losses	(135)	27
Balance, End of period	106	241
Real Estate [Member] | Farmland
Balance, beginning of year	428	675
Charge Offs	(49)	(2)
Recoveries	361	103
Provision for loan losses	(325)	(348)
Balance, End of period	$ 415	$ 428

ALLOWANCE FOR LOAN LOSSES (De67

ALLOWANCE FOR LOAN LOSSES (Details 1) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Allowance for Loan Losses, Individually Evaluated for Impairment	$ 1,246	$ 552
Allowance for Loan Losses, Collectively Evaluated for Impairment	4,950	5,520
Allowance for Loan Losses, Total	6,196	6,072	$ 7,493
Recorded Investment in Loans, Individually Evaluated for Impairment	12,640	14,401
Recorded Investment in Loans, Collectively Evaluated for Impairment	500,368	454,228
Recorded Investment in Loans, Total	513,008	468,629
Real Estate [Member]
Allowance for Loan Losses, Individually Evaluated for Impairment	833	526
Allowance for Loan Losses, Collectively Evaluated for Impairment	4,268	4,490
Allowance for Loan Losses, Total	5,101	5,016
Recorded Investment in Loans, Individually Evaluated for Impairment	11,503	14,275
Recorded Investment in Loans, Collectively Evaluated for Impairment	433,586	402,041
Recorded Investment in Loans, Total	445,089	416,316
Commercial
Recorded Investment in Loans, Total	41,345	26,955
Commercial | Real Estate [Member]
Allowance for Loan Losses, Individually Evaluated for Impairment	499	65
Allowance for Loan Losses, Collectively Evaluated for Impairment	1,490	1,560
Allowance for Loan Losses, Total	1,989	1,625
Recorded Investment in Loans, Individually Evaluated for Impairment	5,149	4,827
Recorded Investment in Loans, Collectively Evaluated for Impairment	122,539	98,504
Recorded Investment in Loans, Total	127,688	103,331
Construction and Land Development | Real Estate [Member]
Allowance for Loan Losses, Individually Evaluated for Impairment		106
Allowance for Loan Losses, Collectively Evaluated for Impairment	191	240
Allowance for Loan Losses, Total	191	346
Recorded Investment in Loans, Individually Evaluated for Impairment	424	245
Recorded Investment in Loans, Collectively Evaluated for Impairment	29,339	25,510
Recorded Investment in Loans, Total	29,763	25,755
Residential 1-4 Family | Real Estate [Member]
Allowance for Loan Losses, Individually Evaluated for Impairment	91	56
Allowance for Loan Losses, Collectively Evaluated for Impairment	2,309	2,320
Allowance for Loan Losses, Total	2,400	2,376
Recorded Investment in Loans, Individually Evaluated for Impairment	4,007	4,416
Recorded Investment in Loans, Collectively Evaluated for Impairment	245,152	245,284
Recorded Investment in Loans, Total	249,159	249,700
Multifamily | Real Estate [Member]
Allowance for Loan Losses, Collectively Evaluated for Impairment	106	241
Allowance for Loan Losses, Total	106	241
Recorded Investment in Loans, Individually Evaluated for Impairment	281	301
Recorded Investment in Loans, Collectively Evaluated for Impairment	15,200	12,281
Recorded Investment in Loans, Total	15,481	12,582
Farmland | Real Estate [Member]
Allowance for Loan Losses, Individually Evaluated for Impairment	243	299
Allowance for Loan Losses, Collectively Evaluated for Impairment	172	129
Allowance for Loan Losses, Total	415	428
Recorded Investment in Loans, Individually Evaluated for Impairment	1,642	4,486
Recorded Investment in Loans, Collectively Evaluated for Impairment	21,356	20,462
Recorded Investment in Loans, Total	22,998	24,948
Commercial Real Estate [Member]
Allowance for Loan Losses, Individually Evaluated for Impairment	413	18
Allowance for Loan Losses, Collectively Evaluated for Impairment	247	145
Allowance for Loan Losses, Total	660	163	266
Recorded Investment in Loans, Individually Evaluated for Impairment	1,117	67
Recorded Investment in Loans, Collectively Evaluated for Impairment	40,228	26,888
Recorded Investment in Loans, Total	41,345	26,955
Agriculture
Allowance for Loan Losses, Individually Evaluated for Impairment		5
Allowance for Loan Losses, Collectively Evaluated for Impairment	20	26
Allowance for Loan Losses, Total	20	31	124
Recorded Investment in Loans, Individually Evaluated for Impairment	12	24
Recorded Investment in Loans, Collectively Evaluated for Impairment	3,482	3,140
Recorded Investment in Loans, Total	3,494	3,164
Consumer Installment Loans
Allowance for Loan Losses, Individually Evaluated for Impairment		3
Allowance for Loan Losses, Collectively Evaluated for Impairment	156	120
Allowance for Loan Losses, Total	156	123	128
Recorded Investment in Loans, Individually Evaluated for Impairment	8	35
Recorded Investment in Loans, Collectively Evaluated for Impairment	22,403	22,153
Recorded Investment in Loans, Total	22,411	22,188
Other Loans
Allowance for Loan Losses, Collectively Evaluated for Impairment	3
Allowance for Loan Losses, Total	3		1
Recorded Investment in Loans, Collectively Evaluated for Impairment	669	6
Recorded Investment in Loans, Total	669	6
Unallocated
Allowance for Loan Losses, Collectively Evaluated for Impairment	256	739
Allowance for Loan Losses, Total	$ 256	$ 739	$ 914

TROUBLED DEBT RESTRUCTURINGS (D

TROUBLED DEBT RESTRUCTURINGS (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2017USD ($)	Dec. 31, 2016USD ($)
# of Loans	1	4
Pre-Mod. Recorded Investment	$ 443	$ 1,052
Post-Mod. Recorded Investment	$ 437	$ 1,066
Real Estate [Member]
# of Loans		4
Pre-Mod. Recorded Investment		$ 1,052
Post-Mod. Recorded Investment		$ 1,066
Commercial Real Estate [Member] | Real Estate [Member]
# of Loans		1
Pre-Mod. Recorded Investment		$ 341
Post-Mod. Recorded Investment		$ 336
Construction and Land Development | Real Estate [Member]
# of Loans
Pre-Mod. Recorded Investment
Post-Mod. Recorded Investment
Residential 1-4 Family | Real Estate [Member]
# of Loans		2
Pre-Mod. Recorded Investment		$ 420
Post-Mod. Recorded Investment		$ 402
Commercial
# of Loans	1
Pre-Mod. Recorded Investment	$ 443
Post-Mod. Recorded Investment	$ 437
Farmland | Real Estate [Member]
# of Loans		1
Pre-Mod. Recorded Investment		$ 291
Post-Mod. Recorded Investment		$ 268

TROUBLED DEBT RESTRUCTURINGS 69

TROUBLED DEBT RESTRUCTURINGS (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Notes to Financial Statements
Total TDRs	$ 6,900	$ 9,600
Period loan is considered to be in default, days	90 days

BANK PREMISES AND EQUIPMENT (De

BANK PREMISES AND EQUIPMENT (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Bank premises and Equipment, Gross, Total	$ 49,186	$ 52,373
Less accumulated depreciation	(23,071)	(22,388)
Bank Premises and Equipment, Net, Total	26,115	29,985
Land
Bank premises and Equipment, Gross, Total	8,130	9,115
Buildings and Improvements
Bank premises and Equipment, Gross, Total	18,866	22,889
Furniture and other equipment
Bank premises and Equipment, Gross, Total	$ 22,190	$ 20,369

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Total pre-tax book income	$ 3,238	$ 949
Domestic [Member]
Total pre-tax book income	$ 3,238	$ 949

INCOME TAXES (Details 1)

INCOME TAXES (Details 1) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Current expense (benefit)	$ 337	$ (7)
Deferred tax expense (benefit)	(193)	(97)
Net income tax expense (benefit)	144	(9)
Federal [Member]
Current expense (benefit)	337
Deferred tax expense (benefit)	(193)	(2)
State [Member]
Current expense (benefit)		(7)
Deferred tax expense (benefit)

INCOME TAXES (Details 2)

INCOME TAXES (Details 2) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Income Tax Disclosure [Abstract]
Income tax expense (benefit) at the applicable federal rate	$ 1,101	$ 323
Nondeductible expenses	15	7
Tax exempt interest income	(35)	(44)
State income taxes less federal tax effect		5
Bank owned life insurance	(39)	(57)
Remeasurement of deferred taxes under TCJA	4,046
Deferred tax valuation allowance change, net	(5,317)	(338)
Penalty on surrender of bank owned life insurance	318
Other adjustments	55	95
Net income tax expense (benefit)	$ 144	$ (9)

INCOME TAXES (Details 3)

INCOME TAXES (Details 3) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Deferred Tax Assets
Allowance for loan losses	$ 1,301	$ 2,064
Deferred compensation	89	147
Accrued employee benefits		15
Nonaccrual loan interest	504	896
Other real estate owned	264	1,911
Repossessed assets		12
Amortization of core deposits	51	101
Amortization of goodwill	260	514
Capitalized interest and repair expense	25	41
Net operating loss carryforward	3,444	5,648
AMT carryforward	339	320
Unrealized loss on securities available for sale	158	235
Total Assets, gross	6,435	11,904
Valuation allowance		(5,317)
Total Assets, net	6,435	6,587
Deferred Tax Liabilities
Accelerated depreciation	607	867
Accrued employee benefits	38
Prepaid expenses	20	38
Deferred loan costs	271	397
Total Liabilities, gross	936	1,302
Net Deferred Tax Asset	$ 5,499	$ 5,285

INCOME TAXES (Details Narrative

INCOME TAXES (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Income Tax Disclosure [Abstract]
Federal statutory tax rate	34.00%
Previous corporate tax rate	35.00%
Revised corporate tax rate	21.00%
Valuation allowance		$ 5,317
Net operating loss carryforward	$ 3,444	$ 5,648
Reduction in deferred tax assets	$ 4,000

TIME DEPOSITS (Details)

TIME DEPOSITS (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Notes to Financial Statements
2,018	$ 171,073
2,019	31,096
2,020	24,340
2,021	26,706
2,022	19,115
After five years
Total	$ 272,330	$ 247,819

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Related Party Transactions [Abstract]
Loan transactions from officers and directors	$ 6,600	$ 5,400
Principal additions	4,300	4,900
Prinicipal payments received	3,200	3,600
Related Party Deposit Liabilities	$ 12,000	$ 11,100

RETIREMENT PLANS (Details Narra

RETIREMENT PLANS (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Retirement Benefits [Abstract]
Company matched employees salary maximum percent	3.00%
Defined contribution	$ 263	$ 385
Related expenses to salary continuation plan	$ 5	$ 5

OTHER REAL ESTATE OWNED (Detail

OTHER REAL ESTATE OWNED (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Real Estate [Abstract]
Balance, beginning of year	$ 10,655	$ 12,398
Additions	3,087	4,577
Purchases of/improvements to other real estate owned		48
Transfers of premises and equipment to other real estate owned	125
Transfers of other real estate owned to premises and equipment		(125)
Proceeds from sales of other real estate owned	(4,742)	(4,232)
Proceeds from insurance claims	(12)
Loans made to finance sales of Other real estate owned	(1,477)	(818)
Adjustment of carrying value	(758)	(1,414)
Deferred gain from sales	45
Gain (loss) from sales	(64)	221
Balance, end of year	$ 6,859	$ 10,655

BANK OWNED LIFE INSURANCE (Deta

BANK OWNED LIFE INSURANCE (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Proceeds from life insurance policy	$ 7,933
Bank owned life insurance income	115	169
Former Key Officer [Member]
Cash surrender value	4,500	12,300
Proceeds from life insurance policy	$ 7,600	$ 318

LEASING ACTIVITIES (Details)

LEASING ACTIVITIES (Details) $ in Thousands	Dec. 31, 2017USD ($)
Leasing Activities Details
2,018	$ 441
2,019	442
2,020	440
2,021	492
2,022	436
Thereafter	4,415
Total	$ 6,666

AVAILABLE LINES OF CREDIT AND82

AVAILABLE LINES OF CREDIT AND FEDERAL HOME LOAN BANK ADVANCES (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Available Lines Of Credit And Federal Home Loan Bank Advances Details
Advances from FHLB - short-term	$ 558	$ 5,000
Advances from FHLB - long-term	7,000	8,758
Total Advances from FHLB	$ 7,558	$ 13,758

AVAILABLE LINES OF CREDIT AND83

AVAILABLE LINES OF CREDIT AND FEDERAL HOME LOAN BANK ADVANCES (Details 1) - Short-term Debt [Member] - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Maximum outstanding at any month-end during the year	$ 6,200	$ 10,000
Average outstanding balance	$ 1,981	$ 2,477
Average interest rate for the year	1.82%	0.46%
Average interest rate at year end	4.07%	0.69%

AVAILABLE LINES OF CREDIT AND84

AVAILABLE LINES OF CREDIT AND FEDERAL HOME LOAN BANK ADVANCES (Details 2) - Unsecured Federal Funds Line of Credit Facilities [Member] - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Maximum outstanding at any month-end during the year	$ 1,227
Average outstanding balance	$ 253	$ 117
Average interest rate for the year	2.10%	1.36%
Average interest rate at year end

AVAILABLE LINES OF CREDIT AND85

AVAILABLE LINES OF CREDIT AND FEDERAL HOME LOAN BANK ADVANCES (Details Narrative) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Banking and Thrift [Abstract]
Available additional borrowings from Federal Home Loan Banks	$ 122,500
Term borrowings with Federal Home Loan Bank	$ 7,000	$ 8,758
Weighted average interest rate	4.10%
Due date	2,018

FINANCIAL INSTRUMENTS WITH OF86

FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Standby Letters of Credit [Member]
Financial instruments with off-balance sheet risk	$ 38,540	$ 2,019
Commitments To Extend Credit [Member]
Financial instruments with off-balance sheet risk	$ 2,519	$ 34,770

TRUST PREFERRED SECURITIES (Det

TRUST PREFERRED SECURITIES (Details) - USD ($) $ in Thousands		12 Months Ended
		Dec. 31, 2017	Dec. 31, 2016
Subordinated debt transactions outstanding		$ 16,496	$ 16,496
NPB Capital Trust 1
Shares Issued		341
Interest Rate		3.96%
Description of Interest Rate	[1]	3 Month LIBOR plus 2.60%
Maturity Date		Jul. 7, 2034
Subordinated debt transactions outstanding		$ 11,341	11,341
NPB Capital Trust 2
Shares Issued		155
Interest Rate		3.13%
Description of Interest Rate	[1]	3 Month LIBOR plus 1.77%
Maturity Date		Oct. 7, 2036
Subordinated debt transactions outstanding		$ 5,155	$ 5,155
[1]	Interest rate on both NPB Capital Trust I and NPB Capital Trust 2 are a floating rate, which resets quarterly.

TRUST PREFERRED SECURITIES (D88

TRUST PREFERRED SECURITIES (Details Narrative)	12 Months Ended
	Dec. 31, 2017
Notes to Financial Statements
Securities Maturity	30 years
Minimum redemption period	5 years
Maximum interest and penalty payment deferral period	60 months

CAPITAL (Details)

CAPITAL (Details) - Bank - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Total Capital to Risk Weighted Assets, Actual, Amount	$ 68,787	$ 67,549
Total Capital to Risk Weighted Assets, Actual, Ratio	15.30%	16.64%
Total Capital to Risk Weighted Assets, Minimum Capital Requirement, Amount	$ 35,970	$ 32,476
Total Capital to Risk Weighted Assets, Minimum Capital Requirement, Ratio	8.00%	8.00%
Total Capital to Risk Weighted Assets, Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions, Amount	$ 44,962	$ 40,595
Total Capital to Risk Weighted Assets, Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio	10.00%	10.00%
Tier 1 Capital Risk Weighted Assets, Actual, Amount	$ 63,160	$ 62,462
Tier 1 Capital Risk Weighted Assets, Actual, Ratio	14.50%	15.39%
Tier 1 Capital Risk Weighted Assets, Minimum Capital Requirement, Amount	$ 26,977	$ 24,357
Tier 1 Capital Risk Weighted Assets, Minimum Capital Requirement, Ratio	6.00%	6.00%
Tier 1 Capital Risk Weighted Assets, Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions, Amount	$ 35,970	$ 32,476
Tier 1 Capital Risk Weighted Assets, Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio	8.00%	8.00%
Tier 1 Capital to Average Assets, Actual, Amount	$ 63,160	$ 62,462
Tier 1 Capital to Average Assets, Actual, Ratio	9.56%	9.93%
Tier 1 Capital to Average Assets, Minimum Capital Requirement, Amount	$ 26,422	$ 25,149
Tier 1 Capital to Average Assets, Minimum Capital Requirement, Ratio	4.00%	4.00%
Tier 1 Capital to Average Assets, Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions, Amount	$ 33,028	$ 31,549
Tier 1 Capital to Average Assets, Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio	5.00%	5.00%
Common Equity Tier 1 Capital to Risk Weighted Assets, Actual, Amount	$ 63,160	$ 62,462
Common Equity Tier 1 Capital to Risk Weighted Assets, Actual, Ratio	14.05%	15.39%
Common Equity Tier 1 Capital to Risk Weighted Assets, Minimum Capital Requirement, Amount	$ 20,233	$ 18,268
Common Equity Tier 1 Capital to Risk Weighted Assets, Minimum Capital Requirement, Ratio	4.50%	4.50%
Common Equity Tier 1 Capital to Risk Weighted Assets, Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions, Amount	$ 29,225	$ 26,386
Common Equity Tier 1 Capital to Risk Weighted Assets, Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio	6.50%	6.50%

CAPITAL (Details 1)

CAPITAL (Details 1) - Common Stock Warrants [Member] - $ / shares	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Number of Warrants
Outstanding and exercisable, beginning of year	881,978	882,353
Exercised	(636,364)	(375)
Expired	(245,614)
Outstanding and exercisable, end of year		881,978
Exercise Price
Outstanding and exercisable, beginning of year	$ 1.75	$ 1.75
Exercised	1.75	1.75
Expired	1.75
Outstanding and exercisable, end of year		$ 1.75

FAIR VALUES (Details)

FAIR VALUES (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Fair Value, Inputs, Level 2 [Member]
Impaired Loans	$ 71,088	$ 70,011
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | US Government Agencies [Member]
Available for sale investments	23,844	24,632
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Taxable Municipals
Available for sale investments	4,397	2,292
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Corporate Bonds
Available for sale investments	5,579	3,749
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Mortgage Backed Securities [Member]
Available for sale investments	37,268	39,338
Fair Value, Inputs, Level 3 [Member]
Other real estate owned	6,859	10,655
Impaired Loans	18,253	24,504
Agriculture | Fair Value, Inputs, Level 3 [Member] | Nonrecurring Basis
Impaired Loans	12	19
Commercial Real Estate [Member] | Fair Value, Inputs, Level 3 [Member] | Nonrecurring Basis
Impaired Loans	704	49
Commercial Real Estate [Member] | Fair Value, Inputs, Level 3 [Member] | Nonrecurring Basis | Real Estate [Member]
Impaired Loans	4,650	4,762
Farmland | Fair Value, Inputs, Level 3 [Member] | Nonrecurring Basis | Real Estate [Member]
Impaired Loans	1,399	4,187
Multifamily | Fair Value, Inputs, Level 3 [Member] | Nonrecurring Basis | Real Estate [Member]
Impaired Loans	281	301
Residential 1-4 Family | Fair Value, Inputs, Level 3 [Member] | Nonrecurring Basis | Real Estate [Member]
Impaired Loans	3,916	4,360
Construction and Land Development | Fair Value, Inputs, Level 3 [Member] | Nonrecurring Basis | Real Estate [Member]
Impaired Loans	424	139
Consumer Installment Loans | Fair Value, Inputs, Level 3 [Member] | Nonrecurring Basis
Impaired Loans	$ 8	$ 32

FAIR VALUES (Details 1)

FAIR VALUES (Details 1) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Impaired Loans
Fair Value	$ 11,394	$ 13,849
Valuation Technique	Appraised Value/Discounted Cash Flows/Market Value of Note
Significant Unobservable Inputs	Discounts to reflect current market conditions, ultimate collectability, and estimated costs to sell
Impaired Loans | Minimum [Member]
General Range of Significant Unobservable Input Values	0.00%
Impaired Loans | Maximum [Member]
General Range of Significant Unobservable Input Values	18.00%
Other Real Estate Owned
Fair Value	$ 6,859	$ 10,655
Valuation Technique	Appraised Value/Comparable Sales/Other Estimates from Independent Sources
Significant Unobservable Inputs	Discounts to reflect current market conditions and estimated costs to sell
Other Real Estate Owned | Minimum [Member]
General Range of Significant Unobservable Input Values	0.00%
Other Real Estate Owned | Maximum [Member]
General Range of Significant Unobservable Input Values	18.00%

FAIR VALUES (Details 2)

FAIR VALUES (Details 2) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Net Loans	$ 506,812	$ 462,557
Time deposits	272,330	247,819
FHLB advances	7,558	13,758
Fair Value, Inputs, Level 2 [Member]
Net Loans	495,214	453,858
Time deposits	272,352	247,258
FHLB advances	7,794	13,993
Fair Value, Inputs, Level 3 [Member]
Net Loans	11,394	13,849
Fair Value, Measurements, Recurring [Member]
Net Loans	506,608	467,707
Time deposits	272,352	247,258
FHLB advances	7,794	13,993
Fair Value, Estimate Not Practicable, Carrying (Reported) Amount [Member]
Net Loans	506,812	462,557
Time deposits	272,330	247,819
FHLB advances	$ 7,558	$ 13,758

PARENT CORPORATION ONLY FINAN94

PARENT CORPORATION ONLY FINANCIAL STATEMENT (Details) - USD ($) $ / shares in Units, $ in Thousands	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015
ASSETS
Due from banks	$ 18,249				$ 18,500
Other assets	3,307				3,470
LIABILITIES
Accrued interest payable	426				331
Accrued expenses and other liabilities	3,450				2,395
Trust preferred securities	16,496				16,496
Total Liabilities	615,727				587,418
STOCKHOLDERS' EQUITY
Common stock - $2.00 par value, 50,000,000 shares authorized; 23,922,086 and 23,354,457 shares issued and outstanding at December 31, 2017 and 2016, respectively	47,844				46,709
Common stock warrants					764
Retained deficit	(10,847)				(14,065)
Accumulated other comprehensive loss	(594)				(456)
Total Stockholders' Equity	50,973				46,917				$ 46,087
Total Liabilities and Stockholders' Equity	$ 666,700				$ 634,335
Common stock, par value	$ 2				$ 2
Common stock, shares authorized	50,000,000				50,000,000
Common stock, shares issued	23,922,086				23,354,457
Common stock, shares outstanding	23,922,086				23,354,457
Parent Company [Member]
ASSETS
Due from banks	$ 1,220				$ 813
Investment in subsidiaries	65,057				62,158
Other assets	1,360				587
Total Assets	67,637				63,558
LIABILITIES
Accrued interest payable	139				125
Accrued expenses and other liabilities	29				20
Trust preferred securities	16,496				16,496
Total Liabilities	16,664				16,641
STOCKHOLDERS' EQUITY
Common stock - $2.00 par value, 50,000,000 shares authorized; 23,922,086 and 23,354,457 shares issued and outstanding at December 31, 2017 and 2016, respectively	47,844				46,709
Common stock warrants					764
Additional paid capital	14,570				13,965
Retained deficit	(10,847)				(14,065)
Accumulated other comprehensive loss	(594)				(456)
Total Stockholders' Equity	50,973	$ 50,355	$ 50,013	$ 47,092	46,917	$ 48,785	$ 48,485	$ 47,234
Total Liabilities and Stockholders' Equity	$ 67,637				$ 63,558
Common stock, par value	$ 2				$ 2
Common stock, shares authorized	50,000,000				50,000,000
Common stock, shares issued	23,922,086				23,354,457
Common stock, shares outstanding	23,922,086				23,354,457

PARENT CORPORATION ONLY FINAN95

PARENT CORPORATION ONLY FINANCIAL STATEMENTS (Details 1) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016
Expenses
Trust preferred securities interest expense									$ 593	$ 508
Other operating expenses									5,966	5,770
Total Expenses									28,928	28,568
INCOME BEFORE INCOME TAXES									3,238	949
Income Tax Expense (Benefit)									144	(9)
NET INCOME									3,094	958
Parent Company [Member]
Income
Miscellaneous income									17	15
Dividends from subsidiaries									111
Undistributed income (loss) of subsidiaries									2,939	1,615
Total income									3,067	1,630
Expenses
Trust preferred securities interest expense									592	508
Professional fees									92	105
Other operating expenses									62	59
Total Expenses	$ 7,229	$ 7,098	$ 7,623	$ 6,978	$ 8,300	$ 7,155	$ 6,776	$ 6,337	746	672
INCOME BEFORE INCOME TAXES									2,321	958
Income Tax Expense (Benefit)									(773)
NET INCOME	$ (82)	$ 484	$ 2,577	$ 115	$ (968)	$ 346	$ 882	$ 698	$ 3,094	$ 958

PARENT CORPORATION ONLY FINAN96

PARENT CORPORATION ONLY FINANCIAL STATEMENTS (Details 2) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)									$ 3,094	$ 958
Net change in:
Other assets									70	(1,257)
Net Cash Provided by Operating Activities									5,734	3,447
CASH FLOWS FROM FINANCING ACTIVITIES
Net Cash Used in Financing Activities									23,019	7,220
Net increase (decrease) in cash and cash equivalents									(2,743)	9,110
Cash and Cash Equivalents, Beginning of the Year				$ 35,448				$ 26,338	35,448	26,338
Cash and Cash Equivalents, End of the Year	$ 32,705				$ 35,448				32,705	35,448
Supplemental Cash Flow Information
Interest									3,118	2,577
Taxes										95
Supplemental Disclosure of Non Cash Transactions:
Retirement of common stock									(111)
Parent Company [Member]
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)	(82)	$ 484	$ 2,577	115	(968)	$ 346	$ 882	698	3,094	958
Adjustments to reconcile net income to net cash provided by operating activities:
Income of subsidiaries									(3,050)	(1,615)
Net change in:
Other assets									(773)	2
Other liabilities									23	22
Net Cash Provided by Operating Activities									(706)	(633)
CASH FLOWS FROM FINANCING ACTIVITIES
Exercise of common stock warrants									1,113	1
Net Cash Used in Financing Activities									1,113	1
Net increase (decrease) in cash and cash equivalents									407	813
Cash and Cash Equivalents, Beginning of the Year				$ 813				$ 1,445	813	1,445
Cash and Cash Equivalents, End of the Year	$ 1,220				$ 813				1,220	813
Supplemental Cash Flow Information
Interest									578	487
Taxes
Supplemental Disclosure of Non Cash Transactions:
Retirement of common stock									(111)
Payment of in-kind dividend to the Company from the Bank									$ 111

SELECTED QUARTERLY INFORMATIO97

SELECTED QUARTERLY INFORMATION (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Net interest income									$ 22,780	$ 21,726
Noninterest income									9,836	7,291
Provision of loan losses									450	(500)
Noninterest expense									28,928	28,568
Net income (loss)									$ 3,094	$ 958
Earnings (loss) per share, fully diluted									$ 0.13	$ 0.04
Total loans and leases	$ 513,008				$ 468,629				$ 513,008	$ 468,629
Total assets	666,700				634,335				666,700	634,335
Total deposits	582,544				554,438				582,544	554,438
Total shareholders' equity	50,973				46,917				50,973	46,917	$ 46,087
Parent Company [Member]
Net interest income	5,845	$ 5,779	$ 5,791	$ 5,365	5,420	$ 5,453	$ 5,402	$ 5,451
Noninterest income	1,905	1,808	4,409	1,714	1,909	2,043	1,753	1,586
Provision of loan losses	450						(500)
Noninterest expense	7,229	7,098	7,623	6,978	8,300	7,155	6,776	6,337	746	672
Net income (loss)	$ (82)	$ 484	$ 2,577	$ 115	$ (968)	$ 346	$ 882	$ 698	3,094	958
Earnings (loss) per share, basic	$ 0	$ 0.02	$ 0.11	$ 0	$ (0.04)	$ 0.01	$ 0.04	$ 0.03
Earnings (loss) per share, fully diluted	$ 0	$ 0.02	$ 0.11	$ 0	$ (0.04)	$ 0.01	$ 0.04	$ 0.03
Total loans and leases	$ 513,008	$ 501,390	$ 488,764	$ 476,490	$ 468,629	$ 464,721	$ 459,613	$ 450,309	513,008	468,629
Total assets	666,700	665,236	659,761	647,594	634,335	633,867	632,311	636,459	666,700	634,335
Total deposits	582,544	581,616	576,346	572,751	554,438	556,516	555,084	555,216	582,544	554,438
Total shareholders' equity	$ 50,973	$ 50,355	$ 50,013	$ 47,092	$ 46,917	$ 48,785	$ 48,485	$ 47,234	$ 50,973	$ 46,917